Deposits have risen as much as 24 per cent in the past year in some parts of the UK – according to a survey from a deposit alternative company.
Ome claims that while the England-wide average rental deposit has actually dropped two per cent in the past year – equivalent to £90 – this masks significant regional variations.
On average across all of England tenants may now be paying a total of £5,058 upfront according to the deposit alternative service – that’s £843 for their first month’s rent, plus a deposit that could be as high as £4,215.
This is £90 less than the £858 for their first month’s rent and a five-week cap of £4,290 this time last year (£5,148).
But it’s a mixed picture regionally, with the cost of securing a rental property in London down five per cent annually, while the South West has seen an increase of four per cent.
In terms of the biggest increase, Corby has seen the cost of securing a rental deposit increase by 24 per cent since this time last year. Exeter and Charnwood have also seen a jump of 23 per cent.
Oxford, Newcastle-under-Lyme, South and West Oxfordshire, Chiltern, Liverpool, Doncaster, Rushcliffe, Haringey and Bristol have also seen the initial cost of renting increase by double-digits on an annual basis.
York has been the best place for tenant affordability, where securing a rental property is concerned. In the last year, the cost of one month’s rent and a five-week rental deposit has fallen by 18 per cent.
A spokesman for Ome says: “This increase will have been driven mainly by a reduction of rental accommodation to meet demand as many buy to let landlords reconsider their investments due to a string of government changes to the sector.”
This post has originally been featured in Letting Agent Today.