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

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

Breaking News

UK monthly property transactions for May 2025

Headline statistics from the latest transactions data include: the provisional seasonally adjusted estimate of the number of UK residential transactions in May 2025 is 81,470, 12% lower than May 2024 and 25% higher than April 2025 the provisional non-seasonally adjusted estimate of the number of UK residential transactions in May 2025 is 80,530, 13% lower than May 2024 and…
Read More
Breaking News

Construction Skills Mission Board (CSMB) shows the Government has a plan

The Construction Skills Mission Board (CSMB) held its first board meeting today (26 June 2025), where it set out a roadmap for recruiting 100,000 more construction workers a year by the end of Parliament. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “The Construction Skills Mission Board (CSMB) is a recognition…
Read More
Paint Stripper Tools
Estate Agent Talk

5 Strategies to Optimise Your Warehouse for Real Estate

The term fixer-upper can mean many things, from ‘slap some paint on the walls and it looks brand new’ to ‘will this building collapse if we open the front door?’ Indeed, in the dicey world of commercial property acquisition, each warehouse you buy will probably fall into both camps. Thinking about the viability of warehouses…
Read More
Breaking News

HMOs sell for up to 50% above market average

New research from Excellion Capital, the boutique debt advisory and investment firm, reveals that HMOs sell for as much as 50% above the average house price, further increasing their investment potential after it was revealed that HMOs also create rental yields of up to 12.5%. After previous research from Excellion Capital recently showed that the…
Read More
Breaking News

UK buyers struggle while 50,000 homes sit empty

As the UK housing crisis deepens, new analysis by Open Property Group exposes a worrying surge in so-called “zombie homes”- properties that sit unoccupied and deteriorating while millions struggle to access affordable housing. Key insights: 50,000+ long-term vacant homes in England alone 23,000+ of these have been empty for more than two years Estimated £13.6…
Read More
Breaking News

Breaking Property News 26/06/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   The UK is Europe’s second most distressed market despite headline GDP growth Retail and Consumers Goods has emerged as the most distressed sector in Europe, with distress levels now the highest since the global financial crisis, according to the latest Weil European Distress Index (WEDI). The…
Read More