Average rental deposit down -10% since the ban on tenant fees

March 27, 2020

The latest research by Hamilton Fraser’s deposit replacement scheme Ome, has found that the average rental deposit being paid by tenants in England has fallen -10.3% since the ban on tenant fees was introduced in June 2019.

Ome looked at the average cost of a rental deposit in the six months prior to the introduction of the fee ban and how it compared in the six months following.

The data shows that the average tenant in England was paying £1,098 for a rental deposit in the six months prior to the tenant fee ban. This has since dropped to £985 in the six months since.

The biggest decline has been in the South West, where the average rental deposit being paid by tenants has fallen -15.8%. Down from £1,233 to £1,040.

The West Midlands has seen the second-largest decline, down -14.2%, while the East of England (-13.8%), North West (-13.6%), South East (-11%) and Yorkshire and the Humber (-10.4%) have also seen the cost reduced by double digits.

The North East is the only region to have seen an increase, with the average deposit paid up 5.3%, while in London the cost has declined by -7.9%, down -9.7% in the East Midlands.

Co-founder of Ome, Matthew Hooker, commented:

“Many in the industry were fearful that the ban on tenant fees and a five-week rental cap where deposits are concerned would lead to a hike in rents for many tenants. However, it looks to have had the desired impact in many regions of the UK, with tenants now paying a good chunk less in order to secure their rental property.

Of course, it may take some time before the true impact of such a major change surfaces and we could still see an increase in costs seep into the market. For the time being, however, the cost of a traditional deposit for the nation’s tenants is slightly more palatable and for those that are still unable to accumulate this upfront wealth, they have the choice of a deposit replacement such as Ome that allows them to pay small monthly fees instead of a large upfront deposit.”

Before and after the Tenant Fees Act (June 2019)
Location
Average deposit 6 months before (Dec 2018 to May 2019)
Average deposit 6 months after (July 2019 to Dec 2019)
Difference before vs after (£)
Difference before vs after (%)
North East
£840
£885
£45
5.3%
London
£1,961
£1,807
-£154
-7.9%
East Midlands
£763
£689
-£74
-9.7%
Yorkshire and the Humber
£710
£636
-£74
-10.4%
South East
£1,391
£1,238
-£153
-11.0%
North West
£834
£721
-£113
-13.6%
East of England
£1,135
£978
-£157
-13.8%
West Midlands
£1,015
£871
-£144
-14.2%
South West
£1,234
£1,040
-£194
-15.8%
England
£1,098
£985
-£113
-10.3%

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Letting Agent Talk

The pros and cons of renting to students: is it the right choice for you?

Student properties are no different in term of quality and facilities than any other type of private rental. And although landlords may have to spend a fair amount on setting up and properly maintaining student lets, they can also charge a good market rent. To help you decide whether letting to students might be worthwhile…
Read More →
Finance

Autumn Budget Misses Mark on Housing Reform: UK Rental Market Squeezed by Shortages and Rising Rents

The UK rental market faces mounting pressures, with a recent Rics survey revealing a critical shortage of properties and surging rent prices. Landlord instructions, a key indicator of properties available to rent, fell to a net balance of -29%, marking this the lowest level since 2021. Strong tenant demand is driving rents higher, with 33%…
Read More →
Estate Agent Talk

Save a house deposit faster than ever in THESE areas!

Save a house deposit faster than ever in THESE areas! Aberdeen City in Scotland is named the best place to live if you want to save for a house deposit fast, saving in as little as a year and a half Inverclyde is second, whilst Burnley is third Average salaries and house prices in each…
Read More →
Estate Agent Talk

Finding Your Dream Home: Expert Advice from Camberley’s Top Estate Agents

Finding the right estate agent is crucial when navigating the competitive housing market in Camberley. With local expertise and in-depth market knowledge, these professionals can guide you toward your ideal property, saving you time and effort. Their understanding of the area’s nuances, from property trends to community relationships, positions them as indispensable allies in your…
Read More →
Breaking News

Zoopla reveals most affordable towns in Britain

With the average home valued at nearly four times average household incomes, Zoopla reveals the most affordable towns in Britain   An average property in Britain is valued at 3.8 times the average annual household income (assuming 2 full-time workers) Cumnock in Scotland, is Britain’s most affordable town to buy in 2024 with average property…
Read More →
Software & Tech

The Evolving Nature of Real Estate and Strategies for Agency Success

Real estate agents are used to working with fluid market dynamics. Adapting their sales strategies and responding to new industry demands is almost second nature to most agencies today. However, while making the necessary adjustments when following housing market trends is important, it’s also important for agencies to consider new business innovations that become available…
Read More →