The average tenancy deposit has risen by over 11% in the last year according to research by my|deposits.
In Q3 2014 the average tenancy deposit protected was £1210, an increase of £121 (11.1%) from Q3 2013 and £12 from Q2 2014.
There is a difference of £1266 between the average cost of deposits in the most expensive and cheapest regions in England and Wales, with average deposits in London at £1,859, a £166 (9.8%) increase from Q3 2013 and up £99 (5.6%) on Q2 2014, whilst Yorkshire and The Humber recorded the lowest average deposit of £593.
Eddie Hooker, CEO of mydeposits, said: “Since the start of Tenancy Deposit Protection in 2007 the cost of the average deposit has risen by around 40%, and much like the cost of rents, deposits continue to rise year on year.
“The deposit value is usually tagged to the rental cost of the property - typically between four to six weeks’ worth of rent - so the only real way to relieve some of the pressures on the rental market is to tackle the huge issue of undersupply of housing in the UK at present.
“It will be one of the biggest challenges for the next elected government, so it’s concerning to see that not all political parties have ironed out the details of their housing manifesto pledges in build-up to next May’s General Election”.
The South East saw the greatest monetary increase in deposit values over Q2 with a rise of £240 (20.3%), however the North East witnessed a growth in average deposit of more than a third (37.7%) which is the biggest proportional growth across England and Wales.
The East Midlands and the North West are the only two regions not to have seen a rise between Q2 and Q3 this year as the East Midlands saw the biggest fall of -£63 (9.3%) which is subsequently more than double the amount in the North West where deposits fell by -£24 (3.7%).
Deposits in the South West have risen similar to that of London year-on-year at £163 or 19.3% which is the biggest proportional growth across all the regions over the 12 months. The East of England saw the only drop in deposit value and growth at -£3 (0.3%).
