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Initial cost of renting has increased by almost a quarter in some parts of England

The cost of renting in England since the tenant fee ban was introduced has increased by almost a quarter in some parts of the country, according to new research. 

The study, undertaken by rental deposit replacement scheme Ome, looked at the existing initial cost of securing a rental home, based on one month’s rent plus a deposit of five weeks’ rent and how this has changed since the introduction of the tenant fee ban in June of last year.

The figures reveal that on a national level the cap seems to have had the desired impact, with the initial cost of renting in England as a whole down 2% year-on-year. 

Consequently, tenants are now paying a total of £1,897 upfront, which is down 2% from £1,931 a year ago. 

However, it is a mixed picture regionally, with the cost of securing a rental property in London down 5% annually, while the South West has seen an increase of 4%. 

In terms of the highest outright cost, Westminster in London is home to the most significant financial hurdle for tenants. One month’s rent plus a five-week rental deposit will set tenants back an eye-watering £6,854.  

Kingston upon Hull is the cheapest place to secure a rental property with the initial cost coming in at £986.

In terms of the biggest increase, Corby has seen the cost of securing a rental deposit increase by 24% since this time last year. Exeter and Charnwood have also seen a jump of 23%.  

Oxford, Newcastle-under-Lyme, South and West Oxfordshire, Chiltern, Liverpool, Doncaster, Rushcliffe, Haringey and Bristol have also seen the initial cost of renting increase by double-digits on an annual basis.  

In contrast, York has seen the cost of one month’s rent and a five-week rental deposit drop by 18% over the past 12 months. 

The Vale of White Horse is the only other area to see a double-digit decline, down 11%. However, Elmbridge, Waverly and Daventry have also seen some of the most considerable reductions in rental costs.

Co-founder of Ome, Matthew Hooker, commented: “There’s no doubt that the tenant fee ban has had an impact on the affordability of renting. However, while some have seen the cost of securing a rental property drop, tenants in many parts of the national rental market have still seen sharp increases. 

“This increase will have been driven mainly by a reduction of rental accommodation to meet demand as many buy to let landlords reconsider their investments due to a string of government changes to the sector.

“Particularly in the current climate, we must work across the sector as a whole to ensure both landlords and tenants are looked after and there is enough stock available to service this demand.  

“For those struggling to overcome this initial financial hurdle, there are alternative services available. A deposit replacement scheme such as Ome’s Deposit Replacement Membership can drastically reduce the initial cost of renting and help address the cash flow issues that stop many tenants from renting in the first place.”

Initial cost of renting based on average month's rent plus a five month rental deposit

Location

2019

2020

Annual change

ENGLAND

£1,931

£1,897

-2%

SOUTH WEST

£1,764

£1,841

4%

NORTH WEST

£1,373

£1,415

3%

WEST MIDLANDS

£1,465

£1,510

3%

EAST MIDLANDS

£1,402

£1,438

3%

SOUTH EAST

£2,205

£2,248

2%

YORKSHIRE AND THE HUMBER

£1,370

£1,382

1%

NORTH EAST

£1,217

£1,220

0%

EAST OF ENGLAND

£1,942

£1,940

0%

LONDON

£3,886

£3,699

-5%

Largest annual increases in initial rental cost in England

Location

2019

2020

Annual change

Corby

£1,260

£1,566

24%

Exeter

£2,196

£2,702

23%

Charnwood

£1,224

£1,501

23%

Oxford

£3,074

£3,573

16%

Newcastle-under-Lyme

£1,307

£1,490

14%

South Oxfordshire

£2,403

£2,732

14%

West Oxfordshire

£2,203

£2,493

13%

Chiltern

£2,896

£3,274

13%

Liverpool

£1,123

£1,253

12%

Doncaster

£1,060

£1,181

11%

Rushcliffe

£1,591

£1,757

10%

Haringey

£3,404

£3,755

10%

Bristol, City of

£2,408

£2,644

10%

Lambeth

£3,940

£4,293

9%

Lincoln

£1,280

£1,391

9%

Largest annual decrease in initial rental cost in England

Location

2019

2020

Annual change

York

£2,327

£1,913

-18%

Vale of White Horse

£2,554

£2,282

-11%

Elmbridge

£3,996

£3,638

-9%

Waverley

£2,828

£2,612

-8%

Daventry

£1,820

£1,692

-7%

Wycombe

£2,459

£2,295

-7%

Kingston upon Thames

£3,141

£2,939

-6%

Kensington and Chelsea

£7,218

£6,802

-6%

Three Rivers

£3,051

£2,880

-6%

Hillingdon

£2,853

£2,700

-5%

Camden

£5,461

£5,180

-5%

Bath and North East Somerset

£2,898

£2,752

-5%

Brent

£3,551

£3,380

-5%

Woking

£2,900

£2,763

-5%

Canterbury

£1,964

£1,877

-4%

Largest initial rental cost in England

Location

2019

2020

Annual change

Westminster

£6,372

£6,854

8%

Kensington and Chelsea

£7,218

£6,802

-6%

Camden

£5,461

£5,180

-5%

City of London

£5,348

£5,117

-4%

Hammersmith and Fulham

£4,658

£4,763

2%

Islington

£4,264

£4,507

6%

Wandsworth

£4,113

£4,406

7%

Lambeth

£3,940

£4,293

9%

Hackney

£4,127

£4,145

0%

Tower Hamlets

£3,989

£4,129

3%

Richmond upon Thames

£4,266

£4,129

-3%

Southwark

£3,771

£3,866

3%

Haringey

£3,404

£3,755

10%

Merton

£3,470

£3,690

6%

Elmbridge

£3,996

£3,638

-9%

Lowest initial rental cost in England

Location

2019

2020

Annual change

Kingston upon Hull, City of

£961

£986

3%

Burnley

£1,031

£1,055

2%

North East Lincolnshire

£1,019

£1,067

5%

Hartlepool

£1,058

£1,073

1%

Hyndburn

£1,060

£1,085

2%

Carlisle

£1,076

£1,098

2%

Barnsley

£1,094

£1,098

0%

Middlesbrough

£1,028

£1,103

7%

Darlington

£1,089

£1,107

2%

County Durham

£1,109

£1,107

0%

Stoke-on-Trent

£1,082

£1,118

3%

South Tyneside

£1,130

£1,121

-1%

Pendle

£1,044

£1,121

7%

Bolsover

£1,089

£1,125

3%

Redcar and Cleveland

£1,118

£1,127

1%

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    Pass the cost onto the landlord and the landlord will pass the cost straight back on to the tenant, not rocket science is it ?

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    Absolutely.

    If this dim Govt. continues to load additional costs and administration onto Landlords, then naturally, like any business will make sure that the tenant ends up paying more.

    This is the EXACT opposite of what the Govt. keeps saying that is what it want to do. How can they not see they are damaging tenants.

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    If a tenant was held to account on all their responsibilities you would see something incredible.
    Rents would fall!

  • icon

    The potentially - and usually - fully returned deposit is NOT a cost of rental, unless the tenants know full well that they won't return the property in good order.

    Everything done to "help" tenants seems to have the opposite effect, preventing decent tenants from getting good affordable housing as rogue tenants are protected from prompt eviction and the financial consequences of their careless and feckless lifestyles.

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    Prime example Robert, I am one of very few landlords in my area that will consider tenants with pets, they paid an extra deposit which was fully refunded if the property was returned in a decent condition, now I charge a higher rent , who loses out? yes the tenant , makes you wounder about these so called intelligent people in our government with their private educations and uni degrees, THICK AS S**T the lot of them.

     
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