Fees Ban: deposits still over £4,000 in high-rent hotspots, despite cap
Figures calculated by Rightmove suggest that even when the Fees Ban and Deposit Caps kick in on June 1, some deposits in high-rent areas will be in excess of £4,000.
Based on a five-week deposit cap, Rightmove has calculated that the cheapest deposits outside of London will be in the North East, at £630 per property on average.
The most expensive will be in London at £2,415 per property.
But within London there will be large variations: the cheapest deposit will be in Rainham at £1,216 and the most expensive at Kensington on £4,065.
The portal’s commercial director and housing market analyst Miles Shipside says it remains to be seen if the ban will result in increased rents as landlords pass on higher costs.
“Tenants will still need to find a pretty hefty rental deposit in many areas” he warns.
“What we really need now is more fresh stock for the rental market so that rents don’t continue to rise at the current rate we’re seeing, so perhaps it’s a good time for some investors to consider buying up properties to let out as the tenant demand is definitely there.”
Rightmove says a five-week deposit in different regions will be, on average:
Greater London – £2,415
South East – £1,216
East of England – £1,069
South West – £932
West Midlands – £799
East Midlands – £745
North West – £700
North East – £630