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Thursday, June 01, 2017

Average deposit stays under £1000

Average tenancy deposits remain just below £1,000, according to recent data from the The Deposit Protection Service

Average tenancy deposits for England and Wales remain just below £1,000 according to figures published by The Deposit Protection Service (The DPS) for the first quarter of 2017.

Deposits are usually amongst the most expensive costs when renters move into a new property, and The DPS’ latest Tenancy Deposit Ratings show that those renting a home between January and March this year had to put down on average £967.84..

The figure was very similar to that for the last quarter of 2016 (£970.18) and represented a slight increase (4.18%) on the corresponding period (January to March) last year (£928.97).

Julian Foster, Managing Director at The DPS, said:

“Over the last ten years The DPS has protected almost five million deposits across England and Wales, and we’ve generally seen deposit sizes increasing during this time.

Tenants need to consider that the deposit for their next property may be greater than the sum protected for their current residence and plan ahead so that they can make the house move they want to make without any financial barriers.

Whatever the cost, however, both landlords and tenants are assured peace-of-mind during their tenancy and fairness when it ends when using The DPS’ popular, easy-to-use and ultra-secure systems.”

Jackie Edney, Head Office Manager at WJ Meade stage and letting agents, said: 

“We expect deposits to increase further once tenant admin fees are banned as letting agencies charge landlords a higher percentage to compensate.

These changes will drive up rents, which will have a knock-on effect on deposits.”

The tenancy deposits of properties with a London postcode were again the most expensive in the country (averaging £1,756.16), with those with Sunderland’s ‘SL’ postcode again having the lowest average (£467.32).

Colchester’s ‘CO’ postcode experienced the greatest increase since the last quarter of 2016, with the average for the area increasing by more than a third (from £576.57 to £905.29 or 33.97%).

The average for properties with Llandrindod Wells’ ‘LD’ postcode fell by the greatest proportion since the last three month of 2016 (from £625.65 to £496.56 or 13.34%).

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