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AST – security deposits capped

From 1 June 2019 security deposits taken on commencement of ASTs will be capped at no more than five weeks’ rent where the annual rent is under £50,000 (and six weeks’ rent where the annual rent is over £50,000). 

Holding deposits will be capped at no more than one week’s rent.

Ls and agents will not be able to charge tenants more than a £50 fee for the tenancy unless they can show that greater costs were incurred. Repair and replacement costs carried out by Ls and agents will be looked at closely. Ls will have to provide evidence that their costs were reasonably incurred. If the evidence is not provided, and L charges T, L will not be able to seek possession of the property under s21 of the Housing Act 1988.

Local authorities have wider powers to deal with Ls and agents if properties are let which are unfit for habitation. A breach of the legislation could result in a fine of up to £30,000. Source: Eversheds Sutherland.

 

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