This is a subject that has been in discussion for some time. There is a talk that it could actually become a reality in 2021.
Of the many possible new rules the government could push through, I see this as a win. It will help take financial pressure off of prospective new tenants and give reassurance to landlords. There is a perception that if you can afford a deposit then you aren’t a good prospect for a landlord. I don’t actually think this is true. You can have virtually no savings and still be a great tenant. If you only had to find a deposit once, imagine how lovely this would feel.
I also find some tenants find the process confusing. It isn’t, its very straight forward, but unfortunately tenant rarely reads the prescribed information, tenants change their correspondence details or claim to know nothing of the process. They have lived somewhere so long they have no recollection of your conversation.
What we hear from tenants at claim/repayment stage:
* I was never told about this
* What’s my unique ID
* You need to do it for me!
* Here’s my bank details can’t you just log in?
* What is the DPS?
* I’ve never heard of it?
* I changed my email address!
Aside from helping tenants to move between properties more easily. I see the Lifetime deposit as another step in the direction of clamping down on uneducated landlords.
So here’s how it could work..
A tenants deposit will go with them from Landlord to Landlord. If any deductions are made it is up to the tenant to make up the shortfall. Effectively the deposit becomes a passport.
Questions like;
Will it be compulsory?
How will shortfalls be covered?
Will a landlord need to register?
Will the landlord need to be accredited?
These are all questions yet to be answered. What do we think would be the pro’s and con’s to this?