Average tenancy deposit approaching £1,000

The average tenancy deposit for England and Wales is just below £1,000 according to the Deposit Protection Service’s figures for the first quarter of 2017.

Those renting a home between January and March this year had to put down on average £967.84.

The figure was very similar to that for the last quarter of 2016 (£970.18) but represents an increase of 4.18 per cent on the January to March period of last year. (£928.97).

“Tenants need to consider that the deposit for their next property may be greater than the sum protected for their current residence and plan ahead so that they can make the house move they want to make without any financial barriers” says Julian Foster, managing director at the DPS.

Jackie Edney, head office manager at WJ Meade stage and letting agents, said: “We expect deposits to increase further once tenant admin fees are banned as letting agencies charge landlords a higher percentage to compensate. These changes will drive up rents, which will have a knock-on effect on deposits.”

The tenancy deposits of properties with a London postcode were again the most expensive in the country, averaging £1,756.16, with those with Sunderland’s ‘SL’ postcode again having the lowest average on £467.32.

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