Average Rental Deposit Costs Have Dropped

AFS Team·19 December 2019·4 min read
Average Rental Deposit Costs Have Dropped

Average Rental Deposit Costs Have Dropped

The average rental deposit being paid by tenants has fallen to £1,299, figures reveal.

The findings from Hamilton Fraser and their recently unveiled deposit replacement scheme highlights that in the year so far, tenants have paid deposits that are worth around £1.9 billion.

However, the firm says that for the first time in five years, a tenant's average deposit is due to fall and it has already fallen by 3% on 2018's figure of £1,336.

Despite that, the average rental deposit is still 7% higher than it was four years ago.

Number of new deposits has fallen

Research also reveals that the number of new deposits has fallen by 17% compared to last year, and the value of these deposits has dropped to £496 million, down from £611 million, or a 19% fall.

The co-founder of the firm's new deposit scheme, Matthew Hooker, said: "There has been a decline in the value and the number of new deposits being taken in recent years and a factor behind this is a lifestyle change to rent for longer.

“This reduces the number of new deposits and their values as tenants stay put in their home."

He added that while the average cost of a deposit is rising because of growing rents, 2019 could be the first year for many when the actual value of deposits will fall.

Tenants want landlords to resolve bill arguments

Meanwhile, a survey of 1,000 tenants highlights that one in seven of them expect their landlord to resolve any problems they may have over bill payments.

In addition, 35% of tenants under the age of 25 say their landlord is responsible for changing lightbulbs - and unless there's a clause in their rental agreement, this responsibility is usually the tenant's.

Also, 23% of tenants say they would leave a parking dispute with neighbours to their landlord to resolve.

Tenants also want their landlord to fix their Wi-Fi issues - for 22% of tenants.

The survey was carried out by utilities provider Glide and the firm's sales director, Richard Price, said: "Being a landlord has its share of responsibilities and there's a duty of care for their tenant but with increasing demand from their occupants is leading to lines becoming blurred in terms of what is and what is not part of a landlord's remit.

"It's easy to see why there are demands that landlords across the UK will perceive as being unreasonable, so it's more important than ever before for both parties to be clear about the issues that will be addressed and by who in the rental agreement."