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% |
You May Also Enjoy
How to Be an Awesome Landlord in 2022
Selling Your House? Here’s What You Need To Do
What Are The Factors To Appreciates The Real Estate Property Prices
WEEKLY NEWS ROUNDUP – 01/07/2022
How can Cash House Buying Agencies thrive in 2022?
