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MPs Urge Government to Reduce Deposit Cap to Five Weeks

MPs have called for the security deposit cap proposed in the Draft Tenant Fees Bill to be reduced from six to five weeks as part of a range of changes to the legislation.

A report based on the Housing, Communities and Local Government Committee’s pre-legislative scrutiny of the fees ban legislation, recognises that it “would deprive letting agents of an income source” but said it introduced more fairness and transparency to the market for tenants.

The select committee has held meetings with several tenant, landlord and letting agent groups as well as local councils and has suggested several changes to the proposed legislation.

Security deposits should be capped at the equivalent of five weeks’ rent in recognition that finding six weeks’ worth of rent can cause financial difficulties for tenants, the report said.

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