The average rental deposit is edging towards the £1,000 mark, with the figure almost reaching double that amount in London, new data has revealed.
New figures from the Deposit Protection Scheme (DPS) shows a steep rise in price of rental deposits. The figure for England and Wales stands at £970.18 for the last three months of last year, up £154.40 on the previous quarter and up £21.88 on the same period a year earlier.
The average deposit for England and Wales was a lower £948.31 during the same period in 2015 and £852.37 during the same period in 2014, meaning it has increased £117.81 during the past two years.
Unsurprisingly properties in the capital have the highest deposits, reaching an average of £1,831.14 - but this is more than double the figure for the rest of England and Wales at £883.21.
By contrast, Sunderland has the lowest average deposit at £490.13, which is at least three times lower than in London.
The research also suggested that the lower rental deposits during the three months from July to September is a result of students returning to rented accommodation ahead of the new academic year. Cheaper accommodation is likely to have a smaller deposit - and student accommodation tends to be at the cheaper end of the market.
This rise will be a welcome increase for landlords who rely on the deposits to cover the cost of any damage by tenants.
Julian Foster, managing director at the DPS, said: “It’s important that landlords have protection against damage and other problems that can arise when they rent out property, but tenancy deposits can be demanding sums for tenants to raise when they move.
The DPS protects tenants deposits and has been entrusted with more than 4.7 million since launching a decade ago.
Its research found that while the figure for England and Wales during the last three months of last year had increased by more than £150 on the previous three months from July to September, it was 30p lower than the three months from April to June of last year.
Have you increased your deposit prices recently? Let us know in the comments
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