PlanetRent: We make rental deposit management easier
Mary-Anne Bowring 27/06/2019
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Good News for Tenants: "Deposit Passporting" Could Simplify Rental Moves
Good news for tenants today: In the future, it could become easier to free up rental deposits when moving between properties through “deposit passporting.” Speaking at a major housing conference in Manchester, Communities Secretary James Brokenshire highlighted this as a step toward a fairer housing market.
Tenant Relief vs. Landlord Worries: What’s the Trade-Off?
Deposit passporting sounds promising for tenants—but what about landlords? Brokenshire explained, “Ministers are inviting proposals to make it easier for renters to transfer deposits directly between landlords.” This addresses a common struggle: tenants often cannot afford a new deposit until their previous one is returned, risking debt or being trapped in their current home. With over 4 million people in the private rental sector, the government aims to gauge the scale of this issue. Housing charity Shelter praised the idea, telling The Times: “A deposit passporting scheme would help renters avoid scrambling for a fresh deposit before reclaiming the old one.”
Landlord Concerns: Why Deposits Are Withheld Until Check-Out
Landlords, however, have valid reasons for withholding deposits until after check-out. Not all tenants leave properties in good condition, and inspections often occur only after move-out. Damage may not be immediately obvious, and if deposits are “passported” upfront, previous landlords could lose recourse for claims.
A Proposed Compromise: Balancing Tenant and Landlord Needs
Brokenshire’s solution? Allow previous landlords to claim part of the deposit for damages, with tenants topping up the new deposit if needed. Could this work? Possibly. The next phase involves a “Call for Evidence” to explore whether the scheme should be government-backed or adapted through existing deposit protection programs.
Next Steps: Industry Collaboration or Government Intervention?
The government will consult the industry on implementation. Brokenshire stressed the need for caution: “We need to do this thoughtfully.” The debate centers on balancing tenant flexibility with landlord protections.
A Cautious Optimism: Will Fairness Prevail?
While deposit passporting offers hope for renters, its success hinges on addressing practical challenges. As proposals evolve, both tenants and landlords will watch closely to see if the promise of fairness becomes reality
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