Latest figures from the Tenancy Deposit Service shows a slight reduction in typical deposits for rental properties in England and Wales.

At the end of March – the latest data available – the average deposit was £1,016 which was a one per cent reduction on a year earlier.

By contrast in Scotland, the average deposit value was £748.75 – an increase of two per cent over the previous year.

In Northern Ireland, deposits increased by just over four per cent to £641.29.

Steve Harriott, TDS chief executive, comments: “The reduction in the value of tenancy deposits in 2021-22 in England and Wales is surprising given the increases in Scotland and Northern Ireland. 

“It is likely however, that this is a result of the deposit cap, which restricts rents to a maximum of five weeks in England [and the cap does not apply elsewhere in the UK. 

“We have all seen evidence of increasing rents and therefore deposits in the period after Christmas, so it’s likely that the figures at the end of March 2023 will show a more significant increase in deposit values in England and Wales”.

TDS provides both custodial and insurance-backed deposit protection and currently protects some 1.8m deposits.