Last Updated: 03/02/2017
Tags: Rental Deposits Are On The Rise
Rental deposits for any property have been on the rise across the country as rents have steadily risen and the average tenancy deposit for England and Wales is now just below £1,000. A recent survey by the tenancy deposit firm DPS says that the average deposit paid between October and December 2016 across the UK was £970.18p. This figure indicates a £154.40p increase on July to September last year, it is just 30p lower than April to June 2016, with the third quarter typically experiencing a dip as students return to rented accommodation ahead of the new academic year. In London however, and some of the areas closest to the capital deposits can rise to £1,800.
The size of deposits means that deposit protection schemes are all the more important to protect both tenant and landlords. By law, a landlord must protect a deposit for any assured shorthold tenancy. There are 2 types of tenancy deposit protection schemes: Custodial schemes where a landlord pays the deposit into the scheme and the scheme looks after your money or Insurance-based schemes where landlords hold the deposit and pay insurance into the scheme.
As a landlord you must be able to confirm numerous pieces of ‘prescribed information’, such as: the amount of the deposit paid to you, the address the deposit relates to, how the deposit will be repaid at the end of the tenancy. Landlords are breaking the law if they haven’t told their tenants which scheme they’re using within 30 days of taking their money so make sure you and your tenants are protect with an official scheme. Hawes are more than happy to help Landlords find the right scheme to protect tenants and landlords alike.