Average tenancy deposit up by £125 in a year

my|deposits has found the average protected tenancy deposit taken in England and Wales has increased by £125 in the past year, from £985 to £1110.

Landlords and agents in London take the biggest deposits from tenants when letting property, while the average deposit size was smallest in the Yorkshire and Humber.

Since tenancy deposit protection was introduced in April 2007, a tenant in London has paid an average £1495 as a deposit for their rented property, which is more than double the amount in many other parts of the country*. By comparison, landlords in the south-west paid £702 while those in Yorkshire and Humber paid £568.

In the south-east, the average deposit was £1069, while in Wales it was £747.

Eddie Hooker, Chief Executive, mydeposits.co.uk, commented:

“With rents continuing to rise, landlords and agents are understandably taking larger deposits to help protect their investments, with the average now at £1110, an increase of £125 in the past year.

“The increase in the assured shorthold tenancy (AST) threshold, with tenancies up to £100,000 per annum now requiring deposit protection, has also increased the number of tenancies requiring deposit protection.

“That means it’s more important than ever for tenants to make sure their deposit money is protected properly with a government-approved scheme such as my|deposits.”

With my|deposits, landlords and agents are able to hold the deposit money in their own bank account for the duration of the tenancy. The tenant and landlord also have access to a free dispute resolution service, if there is a disagreement over the deposit return at the end of the tenancy.