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.