Initial cost of renting up 24% in parts of the nation despite tenant fee ban
The initial financial hurdle of securing a rental property has increased by as much as 24% in some parts of the national property market, according to rental deposit replacement scheme Ome.
Ome looked at the current initial cost of securing a rental home, based on one month’s rent plus a deposit of five weeks’ rent and how this has changed since the introduction of the tenant fee ban in June of last year.
The figures show that on a national level the cap seems to have had the desired impact, with the initial cost of renting in England as a whole down -2% year on year.
As a result, tenants are now paying a total of £1,897 upfront, -2% less than this time last year (£1,931).
But it’s a mixed picture regionally, with the cost of securing a rental property in London down -5% annually, while the South West has seen an increase of 4%.
In terms of the highest outright cost, Westminster is home to the most significant financial hurdle for tenants. One month’s rent plus a five-week rental deposit will set tenants back an eye-watering £6,854.
Kingston upon Hull is the cheapest place to secure a rental property with the initial cost coming in at £986.
In terms of the biggest increase, Corby has seen the cost of securing a rental deposit increase by 24% since this time last year. Exeter and Charnwood have also seen a jump of 23%.
Oxford, Newcastle-under-Lyme, South and West Oxfordshire, Chiltern, Liverpool, Doncaster, Rushcliffe, Haringey and Bristol have also seen the initial cost of renting increase by double-digits on an annual basis.
York has been the best place for tenant affordability, where securing a rental property is concerned. In the last year, the cost of one month’s rent and a five-week rental deposit has fallen by -18%. The Vale of White Horse is the only other area to see a double-digit decline at -11%. However, Elmbridge, Waverly and Daventry have also seen some of the most considerable reductions in rental costs.
| Initial cost of renting based on average month’s rent plus a five month rental deposit | |||
| Location | 2019 | 2020 | Annual change |
| ENGLAND | £1,931 | £1,897 | -2% |
| SOUTH WEST | £1,764 | £1,841 | 4% |
| NORTH WEST | £1,373 | £1,415 | 3% |
| WEST MIDLANDS | £1,465 | £1,510 | 3% |
| EAST MIDLANDS | £1,402 | £1,438 | 3% |
| SOUTH EAST | £2,205 | £2,248 | 2% |
| YORKSHIRE AND THE HUMBER | £1,370 | £1,382 | 1% |
| NORTH EAST | £1,217 | £1,220 | 0% |
| EAST OF ENGLAND | £1,942 | £1,940 | 0% |
| LONDON | £3,886 | £3,699 | -5% |
| Largest annual increases in initial rental cost in England | |||
| Location | 2019 | 2020 | Annual change |
| Corby | £1,260 | £1,566 | 24% |
| Exeter | £2,196 | £2,702 | 23% |
| Charnwood | £1,224 | £1,501 | 23% |
| Oxford | £3,074 | £3,573 | 16% |
| Newcastle-under-Lyme | £1,307 | £1,490 | 14% |
| South Oxfordshire | £2,403 | £2,732 | 14% |
| West Oxfordshire | £2,203 | £2,493 | 13% |
| Chiltern | £2,896 | £3,274 | 13% |
| Liverpool | £1,123 | £1,253 | 12% |
| Doncaster | £1,060 | £1,181 | 11% |
| Rushcliffe | £1,591 | £1,757 | 10% |
| Haringey | £3,404 | £3,755 | 10% |
| Bristol, City of | £2,408 | £2,644 | 10% |
| Lambeth | £3,940 | £4,293 | 9% |
| Lincoln | £1,280 | £1,391 | 9% |
| Largest annual decrease in initial rental cost in England | |||
| Location | 2019 | 2020 | Annual change |
| York | £2,327 | £1,913 | -18% |
| Vale of White Horse | £2,554 | £2,282 | -11% |
| Elmbridge | £3,996 | £3,638 | -9% |
| Waverley | £2,828 | £2,612 | -8% |
| Daventry | £1,820 | £1,692 | -7% |
| Wycombe | £2,459 | £2,295 | -7% |
| Kingston upon Thames | £3,141 | £2,939 | -6% |
| Kensington and Chelsea | £7,218 | £6,802 | -6% |
| Three Rivers | £3,051 | £2,880 | -6% |
| Hillingdon | £2,853 | £2,700 | -5% |
| Camden | £5,461 | £5,180 | -5% |
| Bath and North East Somerset | £2,898 | £2,752 | -5% |
| Brent | £3,551 | £3,380 | -5% |
| Woking | £2,900 | £2,763 | -5% |
| Canterbury | £1,964 | £1,877 | -4% |
| Largest initial rental cost in England | |||
| Location | 2019 | 2020 | Annual change |
| Westminster | £6,372 | £6,854 | 8% |
| Kensington and Chelsea | £7,218 | £6,802 | -6% |
| Camden | £5,461 | £5,180 | -5% |
| City of London | £5,348 | £5,117 | -4% |
| Hammersmith and Fulham | £4,658 | £4,763 | 2% |
| Islington | £4,264 | £4,507 | 6% |
| Wandsworth | £4,113 | £4,406 | 7% |
| Lambeth | £3,940 | £4,293 | 9% |
| Hackney | £4,127 | £4,145 | 0% |
| Tower Hamlets | £3,989 | £4,129 | 3% |
| Richmond upon Thames | £4,266 | £4,129 | -3% |
| Southwark | £3,771 | £3,866 | 3% |
| Haringey | £3,404 | £3,755 | 10% |
| Merton | £3,470 | £3,690 | 6% |
| Elmbridge | £3,996 | £3,638 | -9% |
| Lowest initial rental cost in England | |||
| Location | 2019 | 2020 | Annual change |
| Kingston upon Hull, City of | £961 | £986 | 3% |
| Burnley | £1,031 | £1,055 | 2% |
| North East Lincolnshire | £1,019 | £1,067 | 5% |
| Hartlepool | £1,058 | £1,073 | 1% |
| Hyndburn | £1,060 | £1,085 | 2% |
| Carlisle | £1,076 | £1,098 | 2% |
| Barnsley | £1,094 | £1,098 | 0% |
| Middlesbrough | £1,028 | £1,103 | 7% |
| Darlington | £1,089 | £1,107 | 2% |
| County Durham | £1,109 | £1,107 | 0% |
| Stoke-on-Trent | £1,082 | £1,118 | 3% |
| South Tyneside | £1,130 | £1,121 | -1% |
| Pendle | £1,044 | £1,121 | 7% |
| Bolsover | £1,089 | £1,125 | 3% |
| Redcar and Cleveland | £1,118 | £1,127 | 1% |
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