Average London renters need to find over £3000 as tenancy deposit according to Dlighted
Recent research from deposit-free renting firm Dlighted has revealed that the average London tenancy deposit could now stand at £3014 – even when capped at the equivalent of 6-weeks rent by the government’s draft Tenant’s Fees Bill.
Dlighted states: The recently published English Housing Survey revealed that 30% of homes in the capital are now privately rented, with private rented homes overtaking owner-occupation as London’s most popular form of housing tenure.
With 862,000 households in London living in the private rented sector at the time of the last census, this could mean £2.6bn sitting in tenancy deposit accounts lost to the capital’s economy.
Ajay Jagota is Managing Director of Dlighted said: “Recent research showed that a quarter of UK families have no savings, and another quarter have less than £100 in the bank. Asking them to find more than £3000 just to become your customer is simply terrible business.
“It’s obvious: Restricting potential renters to people who have thousands of pounds in the bank, or risking renters getting into a huge amounts of debt just to rent with you costs you customers. Deposit free renting makes it easier to find and keep good tenants, whilst offering you 200 times more protection against damage and rent arrears.
“It’s also bad for the wider economy to have £2.6bn of Londoner’s money gathering dust or gathering interest for someone else when it could be used to help them get a foot on the property ladder, or to save for the future”.
Read the research report from Dlighted in full click here.