§ Mr. KempTo ask the Secretary of State for the Environment, Transport and the Regions what plans he has to introduce a system of guarantees on deposits for rented accommodation. [45799]
§ Mr. RaynsfordThe Government are concerned about the problem of tenants' rental deposits being withheld unreasonably by landlords at the end of tenancies. We are currently looking at legislation operating overseas to see whether there is an appropriate model for dealing with these problems. But we will need to be satisfied that any new requirements would not deter reputable small landlords, or potential landlords, and that they would achieve a fair balance between the interests of tenants and landlords.
My Department's Housing Investment Programme guidance encourages local housing authorities to consent setting up rent and deposit guarantee schemes where tenants on low incomes have difficulty gaining access to private rented accommodation. These schemes provide a guarantee to the landlord to cover unpaid rent or the cost of damage to the property where the tenant cannot afford to pay a deposit. Over 100 local authorities now operate schemes and schemes are also run by voluntary bodies. The Department provides funding under section 180 of the Housing Act 1996 to voluntary organisations setting up such schemes and is also part funding a project by CRISIS called SmartMove, which aims to develop a network of voluntary schemes in partnership with local authorities in areas with significant levels of homelessness.