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PRS tenants see deposits soar by 34%

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PRS tenants see deposits soar by 34%

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

Mortgages for buyers with small deposits doubles in last 12 months Mortgages for buyers with small deposits doubles in last 12 months

Tenants in the private rented sector (PRS) have seen their deposits soar by 34% since 2007.

According to my|deposits' data, the average tenancy deposit now stands at £1,197 – up £304 from 2007 Q2's £893.

The figures also show a difference of £1,168 between the average cost of deposits in the most expensive and cheapest regions in England and Wales.

The most expensive average deposit paid by tenants is in London at £1,760, a rise of £37 (2.16%) since the same point last year.

In the South East the average tenancy deposit is £1,181, a rise of £50 (4.46%) year on year.

The South East has seen both the largest proportional and actual growth in deposits over the last 12 months.

The cheapest average deposit is in Yorkshire and Humber (£592) and the North East (£602).

Eddie Hooker, CEO of my|deposits, said: “While many rental indexes already exist, this is the time that variations in deposit values have been charted and we hope that our unique digest is both an informative and useful reference for landlords, letting agents and tenants.

“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.

“It is also worth considering that the increase in the average deposit value is closely linked to annual rents, and commonly deposits are the equivalent to between a month to six week’s rent.”

my|deposits is the trading name of Tenancy Deposit Solutions Limited, a company jointly owned by the National Landlords Association and HFIS plc T/A Hamilton Fraser Insurance.

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