Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential impact of security deposit requirements on the cash flow of new start-up businesses.

Security deposits are common in commercial leases. Contractual terms, such as security deposits, are a private matter to be negotiated between parties. However, we would always advise that, where possible, parties seek advice before agreeing to any terms.

The Government has commissioned the Law Commission to review key aspects of commercial leasing to ensure they are fit for a modern day context. This work is underway and further detail will be provided in due course.