To reduce the maximum number of weeks’ rent a landlord can charge tenants, under new laws to be unveiled by ministers, landlords will only be able to charge renters a maximum of five weeks’ rent for deposits instead of six.
Housing Secretary James Brokenshire has won a Cabinet battle to overrule an objection to implement the new cap from the Chancellor, Philip Hammond.
Mr Hammond tried to block the lower deposit cap in a letter to Cabinet colleagues.
He wrote: “I cannot agree to the proposed concession to lower the deposit cap from six weeks’ rent to five weeks’ rent.
“Six weeks’ rent was already placing landlords at risk of uncovered loss for damage to property, as well as risk of loss of rent.
This bill was always a high-risk measure. A cap of six weeks’ rent was already a major concession and I believe we have to hold the line at this level.”
This is a huge triumph for Britain’s 5 million private renters, who make up more than a fifth of households, but has been viewed as a compelling move for the Conservatives to win back key voters at the next General Election.