Recent research* from my|deposits has revealed that the average cost of a deposit has risen by 34% or £304 since the launch of tenancy deposit protection in 2007.
The data shows that the average tenancy deposit now stands at £1197.73 – up £304 from £893.82 since Q2 2007. The figures also show a difference of £1168 between the average cost of deposits in the most expensive and cheapest regions in England and Wales.
The most expensive average deposit paid by tenants is in London at £1,760.30, a rise of £37.20 (2.16%) since the same point last year.
Next on the list is the South East, where the average tenancy deposit is £1,181.99, a rise of £50.44 (4.46%) year on year. The South East has seen both the largest proportional and actual growth in deposits over the last 12 months.
The cheapest average deposit is in Yorkshire and Humber (£592.75) and the North East (£602.38).
Analysis of the data shows the average value of tenancy deposits has climbed steadily since 2007. The average value of deposits increases throughout the year with the exception of Q3, where a sharp decrease is witnessed in each of the seven annual cycles since the launch of TDP.
Eddie Hooker, CEO of mydeposits, said:
“While many rental indexes already exist, this is the time that variations in deposit values have been charted and we hope that our unique digest is both an informative and useful reference for landlords, letting agents and tenants.
“While it’s no surprise that deposits have steadily risen over time it is interesting that we experience a sudden drop in average deposit values in Q3 each year. This is most likely to represent seasonal trends in the housing market due to student rented accommodation, where smaller deposits are typically required.
“It is also worth considering that the increase in the average deposit value is closely linked to annual rents, and commonly deposits are the equivalent to between a month to six week’s rent”.
The first Tenancy Deposit Digest from mydeposits is available now from www.mydeposits.co.uk/deposits-digest