Property News

Tenancy Deposits in London Hit the Highest Level Ever

Em Morley - January 31, 2017

Average tenancy deposits in London have hit the highest level ever, while the typical deposit in England and Wales continue to hover just below £1,000, according to the latest figures from The Deposit Protection Service (The DPS).

Tenancy Deposits in London Hit the Highest Level Ever

Tenancy Deposits in London Hit the Highest Level Ever

The firm’s Tenancy Deposit Ratings show that the average tenancy deposit between October and December 2016 stood at £970.18.

However, properties with London postcodes set a new all-time high during the period, with tenancy deposits averaging £1,831.14 – more than double that for areas outside of the capital (£883.21).

Julian Foster, the Managing Director of The DPS, comments: “It’s important that landlords have protection against damage and other problems that can arise when they rent out property, but tenancy deposits can be demanding sums for tenants to raise when they move.

“However, both parties can have peace of mind over the money when it is protected with The DPS, with our secure and easy processes backed up with a free, impartial dispute resolution service on the rare occasions it is needed.

“The DPS is the UK’s largest protector of tenancy deposits, and we’ve been entrusted with over 4.7m since launching a decade ago.”

Landlords, remember to stick to the law surrounding the protection of tenancy deposits: /landlords-guide-tenancy-deposits/

While The DPS’s figure for October to December represents a £154.40 increase on July to September, it is just 30p lower than April to June, with the third quarter typically experiencing a dip, as students return to rental accommodation ahead of the new academic year.

The average tenancy deposit for the fourth quarter of 2016 also represents a £21.88 rise on the same period in 2015 (£948.31) and a £117.81 increase on the fourth quarter of 2014 (£852.37).

The research found that Sunderland has the lowest tenancy deposits in England and Wales, with the average cost in the SR postcode less than three times lower (£490.13) than that in London.

Have you put your tenancy deposits up over the past few months?