Average tenant deposit set to drop for first time since 2015 as £1.9bn paid in this year

December 9, 2019

Research by Hamilton Fraser’s deposit alternative scheme Ome, has revealed the current cost of the average deposit facing UK’s tenants and how this has changed since 2015.

The Hamilton Fraser Group has an extensive knowledge and database of deposit protection having operated the government authorised scheme mydeposits since 2007, as well as operating its own adjudication service HF Resolution, with the company handling around 25% of all new deposits taken out each year.

New deposits are those paid within each year for a new tenancy and not the total amount of deposits held full stop.

The data shows that so far in 2019, the current tenant is paying an average rental deposit of £1,299, with an estimated 1.5m new deposits paid this year to a value of £1.9bn.

However, while we still have one month to go, the data suggests that the amount paid for the average deposit is due to drop for the first time in five years, already down 3% from last year’s average of £1,336, although it is still 7% higher than in 2015.

What’s more, the number of new tenant deposits being taken and the total value have both seen a consistent drop each year since 2015.

So far in 2019, the number of new deposits being taken has declined by 17% when compared to last year, while the total value of these deposits is also down 19% from some £611m to £496m. Looking over the last five years, the number of new deposits being taken has declined by 22%, while the total value is down 17%.

Co-founder of Ome, Matthew Hooker, commented:

“We’ve seen a decline in the number and value of new deposits being taken over the last few years and a driving factor behind this is a change in our lifestyle choices to rent for longer, which reduces the number of deposits being taken and the total value as tenants opt to stay put in the same property.

Although the average cost for the individual tenant has continued to climb due to increasing rents which form the basis of the deposit calculation, this year looks to be the first in a long time that we might actually see this cost drop.

This has largely been driven by new legislation that has reduced the number of weeks rent an agent or landlord can charge for both a holding and tenancy deposit.”

Ome data for 25% of the market

Year
Total count of deposits
Change (%)
Total value of deposits
Change (%)
Average deposit value
Change (%)
2015
493,281
£600,038,861
£1,218
2016
522,410
6%
£635,432,960
6%
£1,228
1%
2017
503,690
-4%
£628,579,539
-1%
£1,257
2%
2018
460,201
-9%
£610,727,222
-3%
£1,336
6%
2019*
382,411
-17%
£495,677,600
-19%
£1,299
-3%
Five Year Change
-110,870
-22%
-£104,361,261
-17%
£81
7%
*2019 data covers January to November.

 

 

Estimated* national totals
Year
Estimated count of deposits
Change (%)
Total value of deposits
Change (%)
2015
1,973,124
£2,400,155,444
2016
2,089,640
6%
£2,541,731,840
6%
2017
2,014,760
-4%
£2,514,318,156
-1%
2018
1,840,804
-9%
£2,442,908,888
-3%
2019*
1,529,644
-17%
£1,982,710,400
-19%
Five Year Change
-443,480
-129%
-£417,445,044
-17%
*Estimations based on Ome data with 25% of all deposits multiplied by four.

Properganda PR

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

You May Also Enjoy

Letting Agent Talk

The Flats Above the Shop Problem

Why residential property hidden inside commercial ownership keeps causing trouble By Adam Hills, Client Services Director, LRG Living Markets Somewhere in many commercial property portfolios sits a small collection of front doors that was never really part of the plan. Many large and small retailers inherit residential property portfolios by default as part of mixed-use…
Read More →
Estate Agent Talk

Buying Alone? What Solo Buyers Need to Know Before Making an Offer on a House

Figures show that solo buyers accounted for 36.9% of Barclays’ mortgage completions in June 2026, as more people chose to step onto the property ladder without a partner beside them. Choosing independence over waiting for a joint purchase has doubled over the last 50+ years, with solo first-time buyers doubling from 15% before 1980 to…
Read More →
Estate Agent Talk

How to Make a New-Build Living Room Feel Less Like a Show Home

An empty new-build living room can be surprisingly difficult to furnish. The walls are freshly painted, the sockets are in place, and there is nothing to remove before decorating begins. Yet once the sofa arrives, the room can still feel unsettled: too bare in some places, awkwardly crowded in others. The answer rarely involves buying…
Read More →
Breaking News

Mortgage Borrowing Dip

Key points: Net borrowing of mortgage debt by individuals decreased to £3.9 billion in September, from £4.2 billion in August, below the previous 6-month average of £4.9 billion. Net mortgage approvals for house purchases decreased to 53,400 in September, below an average of around 58,800 over the previous 6-months. Approvals for remortgaging increased to 42,600…
Read More →
Breaking News

Autumn Budget 2026: Property industry reaction

Following today’s Autumn Budget, reaction from property industry experts on six key areas for the property market. First-time buyer support: The £4.7bn Your First Home equity loan scheme, supporting 70,000 buyers, alongside the introduction of a new First Time Buyer ISA. Inflation and borrowing costs: The extension of the fuel duty freeze, household energy support…
Read More →
Breaking News

Can you legally BAN Halloween Trick or Treaters?

People who dread the annual knock of trick-or-treaters may have more power to keep Halloween callers away than they realise. As millions of children prepare to take to the streets on October 31, a property law expert has explained what homeowners can do if they do not want strangers walking up their path or knocking…
Read More →