The average tenancy deposit in England and Wales has almost hit £1,000, according to new figures from the Deposit Protection Service’s (DPS) Tenancy Deposit Ratings report.
When private tenants move to a new rental property, they are usually required to pay their landlords a deposit to cover any damage or other costs incurred while they live at the address. By law, landlords must protect their tenant’s deposit in a Government-approved protection scheme.
The DPS data shows that the average tenancy deposit in England and Wales between April and June this year was £970.48 – a £41.50 (4.47%) increase on January to March, and a £102.59 (11.82%) rise over the past two years.
The Managing Director of the DPS, Julian Foster, comments: “Tenancy deposits give landlords peace of mind when they rent out property, but they are usually large sums and are often the most financially demanding aspect of moving house.
“Nevertheless, when landlords protect the money with the DPS, renters can also be assured that their money is safe throughout their tenancy, and that they’ll have recourse to free, impartial adjudication if there is a dispute when they move out.”
The average tenancy deposit for properties in central London postcodes is the highest in the country, at £1,799.11. The central London market has overtaken Kingston upon Thames’ KT postcode (£1,682.85), which had the most expensive tenancy deposits between January and March.
Twickenham (£1,596.38), Enfield (£1,562.97) and St Albans (£1,562.04) complete the top five most expensive areas for tenancy deposits in England and Wales.
Tenants looking for the cheapest deposits should move to Durham’s DR postcode, which has an average tenancy deposit of just £467.76.
Although requiring a tenancy deposit is a great way of preventing damage to your property and covering any repair costs your tenants incur, you could face much greater expenses when the tenancy ends.
The best way to ensure you’re not out of pocket when your tenant moves out is with a complete and comprehensive Landlord Insurance policy.
As a specialist insurer, we will cover the cost of loss or damage to your property through a variety of scenarios – in fact, the Just Landlords policy includes 33 essential covers as standard and is rated 5-star by Defaqto. Protect your investment now: https://www.justlandlords.co.uk/landlordinsurance