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

Breaking News

Prime London sellers return to market

The latest analysis from Beham and Reeves has found that the number of homes listed for sale at £2m or above across Prime Central London increased during the second quarter of 2026, although performance continues to vary considerably between the capital’s most prestigious neighbourhoods.   Benham and Reeves analysed current Prime Central London property listings…
Read More →
Estate Agent Talk

What to know when buying land

The closure of UK Land & Farms (UKLAF) has left a significant gap in the UK’s specialist land market with buyers and sellers now forced to adapt after 18 years of relying on UKLAF as the cornerstone of the industry. As interest in land continues to grow, the company says the closure also serves as…
Read More →
Letting Agent Talk

Tenant demand strong, landlord supply shrinking

New RICS data shows tenant demand at its strongest in over a year – while landlord supply keeps shrinking. That’s not bad luck. It’s a trust problem, and it’s fixable. “These numbers should be good news for landlords. Demand is the strongest it’s been in over a year. Instead, they are deciding to head for…
Read More →
Letting Agent Talk

Why Join a Letting Agents Association?

Why Every Letting Agent Should Join a Professional Body The lettings industry continues to evolve, with new legislation, increasing compliance requirements and higher expectations from landlords and tenants alike. For letting agents, staying informed and operating to recognised professional standards has never been more important. Joining a letting agents association provides far more than a membership…
Read More →
Breaking News

House price growth remained subdued in July

UK annual house price growth slowed to 1.8% in July, from 2.2% in June House prices were up 0.1% month on month Average time in a home is 14 years: 24 years for those owning outright and 5 years in private rented sector Three quarters of moves were within same tenure type in 2024/25 Headlines…
Read More →
Breaking News

Rent hikes and tighter tenant checks as landlord costs climb

Rising costs are prompting 63% of professional landlords to raise rents, prioritise lower-risk tenants and reassess portfolios Renters face a more expensive and more selective rental market as professional property investors respond to re-emergence of realistic gilt yields, rising operating costs and regulatory change by increasing rents and reassessing tenant risk and selection criteria, according…
Read More →