Using our own data and the rental price statistics from the Office for National Statistics (ONS) we investigated the average rental deposit cost in each region of England and explored how this compares to the regional average based on the five-week rent cap.
Our recent research revealed which parts of the rental market tenants are paying above the odds in when it comes to their initial rental deposit and which regions are below the average five-week rental deposit cost.
The figures showed that based on a five-week rental deposit, the average tenant in England should be paying £1,054 to secure their rental property. However, the good news is that the data shows the average deposit is only £997, coming in at 5.4 per cent less.
“It’s great to see that in the majority of English regions tenants are generally paying below average rental deposits, but unfortunately this isn’t the case across the board.
While London is still home to the highest deposit cost, this financial hurdle will be relative to each region. So while the average deposit being paid in the North East is still considerably lower than some regions, the fact it comes in 21.9 per cent higher will mean the obstacle for those trying to secure a rental property is higher than elsewhere around the country.
The availability of deposit replacement schemes such as Ome helps to mitigate this initial barrier to renting and removes the cash flow issue by allowing tenants to pay smaller, monthly instalments. As a result, they can make their move within the rental sector while landlords and letting agents remain protected. It is a win, win for everyone involved.”
Our data found that London is predictably home to the highest deposit, with the average deposit currently sitting at £1,855. According to ONS data, the average deposit in London based on five weeks rent should be £2,055, meaning tenants are paying 9.7 per cent below average.
The South East (£1,266), South West (£1,076) and East of England (£1,018) are also home to a rental deposit above the £1,000 mark.
The most significant difference is in Yorkshire and the Humber, where according to our data, tenants are paying an average deposit of £644, which is 16.1 per cent below the average for the region.
The East Midlands also comes in 13.2 per cent below the regional average, with an average tenancy deposit of £693. The North West is also below regional average at £742 (-5.6 per cent) along with the East of England at £1,018 (-5.5 per cent).
Unfortunately, this isn’t the case in every region. At a cap of five weeks’ rent, the average tenancy deposit in the North East sits at £678. However, our research shows that the average tenant is currently paying £826, a considerable increase of 21.9 per cent.
In the South West, our data shows the average tenant is paying £1,076, which is 5.4 per cent above average. In the West Midlands (1.5 per cent) and the South East (1.4 per cent), the average deposit paid also exceeds the average based on average rental costs at the five-week rental cap.