Under amendments made to the bill by Labour MPs, landlords must first ensure that they have used a deposit scheme when they want to evict a tenant. This means that a landlord must return the deposit before evicting a tenant.
This amendment is intended to strengthen the protection of tenants' rights while ensuring that landlords handle deposits in accordance with the regulations. The current rules require landlords to return deposits to tenants before evicting them.
However, the new amendments will require landlords to use the deposit scheme before evictions can take place. This will ensure that tenants' deposits are properly managed and prevent landlords from abusing their power.
In addition, MPs have called for the Bill to be amended to require the Secretary of State to explain what constitutes anti-social behaviour within six months of the Bill being approved. This initiative aims to clearly define and delineate anti-social behaviour in order to better protect tenants from misconduct and abuse.
At the same time, penalties for non-compliance with the Landlord Compensation Scheme (LCS) will be strengthened.
Under the new amendments, penalties will be increased from a maximum of £30,000 to £60,000 for landlords who do not deal with deposits in accordance with the rules. This will provide greater incentives for landlords to ensure they properly manage and return tenants' deposits.
There will also be some changes to the rules regarding the amount of the deposit. Under the current rules, the maximum amount of deposit that can legally be claimed for a tenancy with an annual rent of less than £50,000 will remain at five weeks' rent.
However, for tenancies with an annual rent of more than £50,000, the deposit amount will be increased to six weeks' rent. This change is designed to protect tenants' interests by ensuring that the amount of their deposit matches the value of the tenancy agreement.
In addition, Green Party MP Caroline Lucas has proposed an amendment to require details of energy performance certificates to be recorded in a forthcoming online portal register. This will improve tenants' knowledge of the energy efficiency of their rented homes and prompt landlords to take steps to improve the energy performance of their homes.
These amendments to the Rental Reform Bill are designed to strengthen tenant protection and transparency in the rental market. By requiring landlords to use deposit schemes, strengthening penalties and increasing energy efficiency requirements, tenants will enjoy greater protection. These reforms aim to balance the interests of landlords and tenants and promote a fair and sustainable rental market.