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The Average Tenancy Deposit in 2018 Hit £1,110
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The average tenancy deposit across the UK in 2018 was £1,110, following an increase across all locations, according to the latest Statistical Briefing report from the Tenancy Deposit Scheme (TDS).
The report highlights the increasing value of tenancy deposits and number of deposits protected in England, Wales, Scotland and Northern Ireland, but there are regional differences in the average tenancy deposit.
The average tenancy deposit value in England and Wales is almost double the level in Northern Ireland, although the TDS points out that significantly higher deposits in London distort the overall picture.
According to the TDS, the average tenancy deposit in England and Wales last year was £1,110. In Northern Ireland, it was £587, while the Scottish average sat in the middle, at £675.
Across the UK, the average tenancy deposit increased in value between 2017-18, by 2% in England and Wales, 1.5% in Scotland, and by 1.4% in Northern Ireland.
Alongside the average tenancy deposit value increasing, the number of deposits protected has also risen year-on-year in the UK.
In England and Wales, 3,748,725 deposits were protected, which is up by almost 1.6% from 3,691,242 a year earlier. In Scotland, an additional 9,441 deposits were protected between 2017-18 – an increase of nearly 4.7% annually.
Northern Ireland experienced the greatest growth in the amount of tenancy deposits protected year-on-year, at 8.97%, from 49,102 to 53,510.
Steve Harriott, the Chief Executive Officer at the TDS, says: “While the report highlights broad differences between the constituent countries of the UK, it hides more local disparities. For example, the average deposit value in England and Wales does not reflect the difference between central London and areas with lower average deposits.
“The report does, however, demonstrate that the private rented sector is continuing to grow, with an increase in the number of deposits protected and their value across the UK.”
He adds: “There are, of course, a number of reasons behind the growth, but, as the sector expands, we continue to see the numbers of deposits protected increasing.”
Landlords and letting agents must be aware that security deposits will be capped at five weeks’ rent under the upcoming Tenant Fees Bill.
