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TODAY'S OTHER NEWS

Deposits rise as much as 24% in some parts of England - claim

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.”

  • icon

    I might be being thick here.. but can someone explain the figures to me??? that £4,215 seems awfully high for a deposit???

    Barry X

    The article says twice that this is a MONTHLY rent (though changes the figure from £843 to £858 without proper explanation).

    However, due to the hated and utterly pathetic Tenant Fees Act 2019 we are only allowed to collect a 5-week deposit.

    £4,290 **IS** 5 times £858 to maybe its a weekly rent (even though it says its a monthly rent)? BUT if that's so, and it is really a weekly rent, THEN the monthly rent would be around £3,718 which is of course possible for a relatively high-end property but it can't possibly be the "....England-wide average rental..."!!!!!

    This seems to be a complete mess to me and not a well written, properly checked or edited article.

    ALSO, the whole basis of it seems completely WRONG! Surely, in view of the stupid 2019 act the article should be about changes (up or down) in rents not deposits (as they are now directly related in the vast majority of cases to the unfair 5-week cap).

     
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    @Barry X
    One £843) is this year's monthly rent and £858 is last year's rent. IN both cases the deposit figures are wrong and do not instil much faith in them as a Deposit replacement company. The deposits should therefore be £972.69 and £990.

    Again this does not inspire confidence in the company and I will not be a client of theirs now or in the future.

     
  • David Porter

    Somebody needs to check their figures...

  • Angus Shield

    Doh; now where is my per-decimal abacus?!

  • icon

    You know it must be Diane Abbott or Priti Patel doing the maths.

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