Letting fees rules question - deposit return
Discussion
A question for landlords or tenants...
Under the new letting fees rules which came into effect on the 1st June, the maximum deposit a landlord or letting agency can request is 5 weeks' rent (if the annual rent is less than £50k). The government's advice document states:
From 1 June 2019, the cap applies to fixed term contracts which are renewed for another fixed term – even if this is at the same property – as they will be a new applicable tenancy. Landlords and letting agents will be required at this point to repay the amount of the deposit held which is over the five week cap
But...does anyone know what happens if I just move onto a rolling statutory periodic tenancy, rather than agreeing a new fixed term contract? Do the same rules apply? Am I still 'renewing my tenancy'?
I think the answer is that the same rules don't apply, and that I wouldn't get the extra 3.6 weeks' rent I paid back, but it doesn't seem to be completely clear. Also not sure if this makes moving onto a rolling agreement more or less likely than moving to another fixed-term agreement.
Thanks
Under the new letting fees rules which came into effect on the 1st June, the maximum deposit a landlord or letting agency can request is 5 weeks' rent (if the annual rent is less than £50k). The government's advice document states:
From 1 June 2019, the cap applies to fixed term contracts which are renewed for another fixed term – even if this is at the same property – as they will be a new applicable tenancy. Landlords and letting agents will be required at this point to repay the amount of the deposit held which is over the five week cap
But...does anyone know what happens if I just move onto a rolling statutory periodic tenancy, rather than agreeing a new fixed term contract? Do the same rules apply? Am I still 'renewing my tenancy'?
I think the answer is that the same rules don't apply, and that I wouldn't get the extra 3.6 weeks' rent I paid back, but it doesn't seem to be completely clear. Also not sure if this makes moving onto a rolling agreement more or less likely than moving to another fixed-term agreement.
Thanks
Good point - current deposit is 8.66 weeks (2 months) rent based on the 2018 rate - moving onto a new fixed term agreement the deposit would be capped at 5 weeks rent but at either the 2019 rate or a new rate. So I'd get something back but it wouldn't be 3.66 weeks rent at 2018 rates.
This landlord puts the rent up annually anyway, so discussing a fixed term or statutory periodic tenancy shouldn't make much difference there.
This landlord puts the rent up annually anyway, so discussing a fixed term or statutory periodic tenancy shouldn't make much difference there.
Spumfry said:
Good point - current deposit is 8.66 weeks (2 months) rent based on the 2018 rate - moving onto a new fixed term agreement the deposit would be capped at 5 weeks rent but at either the 2019 rate or a new rate. So I'd get something back but it wouldn't be 3.66 weeks rent at 2018 rates.
This landlord puts the rent up annually anyway, so discussing a fixed term or statutory periodic tenancy shouldn't make much difference there.
the max deposit is set at 5 weeks on the renewal contract. So if you paid £2000 deposit on a £1000 property 12 mths TA and your tenancy is renewed for another 12 mths at £1050pcm the max deposit would be £1211.54 thus you should get back £788.46 after your new tenancy starts.This landlord puts the rent up annually anyway, so discussing a fixed term or statutory periodic tenancy shouldn't make much difference there.
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