Finance News

Tenancy Deposits in Scotland £100 Cheaper than England and Wales

Em Morley - June 14, 2016

The average tenancy deposit in Scotland is around £100 cheaper than in England and Wales, according to the Letting Protection Service Scotland (LPSS).

New tenants in Scotland paid almost £800 on average to their landlord in deposits over the last year, found the research.

When private tenants move into a new rental property, they typically pay their landlord a deposit to insure against damage or other costs incurred during the tenancy. By law, all landlords must protect tenancy deposits in a Government-approved scheme.

Tenancy Deposits in Scotland £100 Cheaper than England and Wales

Tenancy Deposits in Scotland £100 Cheaper than England and Wales

Between June 2015 and May 2016, the average deposit in Scotland was £794.11 – £102.89 (11.5%) cheaper than the average for rental properties in England and Wales over the same period, of £897.00.

The Managing Director of the LPSS, Julian Foster, comments: “Tenancy deposits give landlords peace of mind when they rent out a property, but they are usually large sums and are often the most financially demanding aspect of moving house.

“Nevertheless, when landlords protect the money with the LPSS, renters can also be assured that their money is safe throughout their tenancy, and that they’ll have recourse to free, impartial adjudication if there is a dispute when they move out.

“Both landlords and tenants need a deposit protection service that is fast, efficient, clear and communicative, and the LPSS has been entrusted with thousands of deposits since we launched in 2012.”

The LPSS data found that Edinburgh’s EH postcode has the most expensive tenancy deposits in Scotland, at an average of £908.44 – more than double the average for properties in Kirkwall’s KW zone, which is Scotland’s cheapest area, at £441.67.

Deposits for properties in Aberdeen, at £860.39, Kirkcaldy, at £794.11, and Falkirk, at £744.21, all average over £700, with the average in the Outer Hebrides, £464.00, and Dumfries and Galloway, £499.35, both below £500.

The most expensive tenancy deposits in the UK are found in Kingston-upon-Thames’ KT postcode, where tenants pay £1,715.25 – more than double the average for Scotland and almost four times the average deposit in Kirkwall.

The cheapest average deposit in England and Wales is in Liverpool, at £445.00, which is just £3.33 more expensive than Kirkwall’s.

Yesterday, a leading property expert called for the Government to abolish tenancy deposits altogether.