Deposits up 34% since start of TDP

The average cost of a deposit across England and Wales has risen by 34 per cent, or £304, since the launch of tenancy deposit protection in 2007.

Data from Mydeposits shows that the average tenancy deposit now stands at £1,197.73 - up from £893.82 seven years ago. The figures also show a dramatic difference of £1,168 between the average cost of deposits in the dearest and cheapest regions.

The most expensive average deposit paid by tenants is in London at £1,760.30; next is the south east at £1,181.99.

The cheapest average deposit is in Yorkshire and Humber (£592.75) and north east England (£602.38).

Analysis of the data shows the average value of tenancy deposits has climbed steadily since 2007. The average value of deposits increases throughout the year with the exception of Q3, where a sharp decrease is witnessed in each of the seven annual cycles since the launch of TDP.

While it's no surprise that deposits have steadily risen over time it is interesting that we experience a sudden drop in average deposit values in Q3 each year. This is most likely to represent seasonal trends in the housing market due to student rented accommodation, where smaller deposits are typically required says Mydeposits chief executive and new redress ombudsman Eddie Hooker.