London has long been home to the highest rental deposits, but what other regions in England are seeing tenants pay above average sums?
A new study, undertaken by rental deposit replacement scheme Ome, has looked at average deposits as part of the existing initial cost of securing a rental home, based on the five-week rent cap, using rental price statistics from the Office for National Statistics as well as their own data.
The figures reveal that the average tenant in England should be paying £1,054 to secure their rental property. However, Ome’s data shows that the average deposit is 5.4% less than this; currently at £997.
The average deposit in London currently sits at £1,855, with the South East, South West and East of England also home to a rental deposit above the £1,000 mark.
But while London is the most expensive, Ome’s data shows that tenants are paying below the average based on rental costs.
According to ONS data, the average deposit in London based on five weeks’ rent should be £2,055, with Ome’s data showing the capital’s tenants are paying 9.7% below this average.
The most significant difference is in Yorkshire and the Humber, where according to Ome, tenants are paying an average deposit of £644, 16.1% below the average for the region.
The East Midlands comes in 13.2% below the regional average, with an average tenancy deposit of £693, along with the North West (-5.6%) and the East of England (-5.5%).
At a cap of five weeks’ rent, the average tenancy deposit in the North East sits at £678. But the average tenant is currently paying £826, a considerable increase of 21.9%, based on Ome’s data.
In the South West, Ome’s data shows the average tenant is paying £1,076; which is 5.4% above average. In the West Midlands (1.5%) and the South East (1.4%), the average deposit paid also exceeds the average based on average rental costs at the five-week rental cap.
Matthew Hooker, Co-founder of Ome, commented: “It’s great to see that in the majority of English regions tenants are generally paying below average rental deposits, but unfortunately this isn’t the case across the board.
“While London is still home to the highest deposit cost, this financial hurdle will be relative to each region. So while the average deposit being paid in the North East is still considerably lower than some regions, the fact it comes in 21.9% higher will mean the obstacle for those trying to secure rental property is higher than elsewhere around the country.
“The availability of deposit replacement schemes such as Ome helps to mitigate this initial barrier to renting and removes the cash flow issue by allowing tenants to pay smaller, monthly instalments.”