Rental Deposit Required Vastly Exceeds Tenant Savings

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Landlords and letting agents in Britain’s largest cities are asking for an average of £1507 to be available for a rental deposit, despite one in four families having an average of just £95 in savings.

New data from Dlighted found that landlords and letting agents in Edinburgh and Brighton charge the largest sums for families to move house. Bradford and Hull were found to be the cheapest. There is concern that increasingly expensive deposits are stifling the sector by limiting tenants’ options and damaging their finances.

The average tenancy rental deposit in the UK’s 20 biggest cities currently sits at £1407. This figure rises to £1536 if the ever expensive capital city of London is included in that price.

Excluding London, Edinburgh requires the most expensive rental deposit to move house, at an average of £2631. Brighton follows closely behind at £2589. Manchester and Cardiff also require steep deposits from tenants, at £1834 and £1825 respectively, whilst Leeds landlords ask for a deposit of £1814. In contrast, Hull and Bradford are the cheapest areas to move home in, requiring deposits of just £684. Stoke, Sunderland and Derby are also relatively low cost in terms of average deposit, at £797, £855 and £891 respectively.

The average tenancy rental deposit for London is currently £3015.

Managing Director of Dlighted, Ajay Jagota, said: ‘Landlords and letting agents have really got to ask themselves whether it’s good business to ask tenants to pay sixteen times their total life savings to become their customers, when zero deposit renting using deposit replacement insurance gives them almost 400 times as much protection against unpaid rent, property damage. Doing things this way doesn’t just make it harder to find tenants, by forcing them into debt or financial dire straits just to become your customers it makes it harder to keep them too.’

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