Toggle menu

 

jezzards property search
03330 433 633
Lines open 24 hours

Lettings: What Is An Acceptable Deposit?

 
 
 
 
  16 Apr 2018

Letting a property can be quite expensive and there are several initial costs to consider. The initial costs associated with buying property are well documented, with the mortgage deposit being a major issue for many prospective buyers. Tenants also must contend with a deposit and this sum of money may impact on the ability to find the right property. At Jezzards, we understand that there is a wide range of opinions on what is an acceptable deposit, and we will try and lay-out some of the opposing views.

While it looks as though the Government will provide a six-week cap on deposits, the Housing, Communities and Local Government Committee believes that a five-week cap would be the best level. You can see why tenants would prefer to pay less money as a rental deposit if they can, but landlords are intimating that six-week is the lowest they are willing to consider.

If a five-week cap is imposed on deposits, there is a strong chance that some landlords will adjust who they are willing to let to. As an example, the National Landlords Association, the NLA, has pointed out that a five-week deposit cap would see many landlords unwilling to let to tenants with pets. This is because they believe that this sum would not be sufficient to cover the cost of repairing pet damage.

Knowing that a deposit cap could lead to some potential tenants being left out of the market is a concern, and therefore, this is a topic that is still being debated and discussed. When it comes to an acceptable deposit, a lot depends on what the tenant is willing or able to pay, and as you would expect, the deposit for property in London could become very expensive

How much could a tenant pay for a deposit in London?

According to the home.co.uk site, the average rent in London is £2,945 per calendar month which equates to £575.75 per week. The size of deposit with a five, six and seven-week limit in London is listed below:

  • A five-week cap would carry a deposit of £2,878.75
  • A six-week cap would carry a deposit of £3,454.50
  • A seven-week cap would carry a deposit of £4,030.25

With a tenant also likely having to pay their first month’s rent up-front and pay for removal costs, the cost of moving into rented accommodation can be very expensive. Of course, London costs are not typical and tenants in other areas will not have to pay as much money. As an example, in Ashford in Kent, the average rent per calendar month, according to the home.co.uk site, comes in at £783 per calendar month, or £180.70 per week.

London is not typical in the UK lettings market

The following information outlines how much of a deposit a tenant may have to pay for a deposit in Ashford in Kent:

  • For a five-week cap, the average deposit would be £903.50
  • For a six-week cap, the average deposit would be £1,084.20
  • For a seven-week cap, the average deposit would be £1,264.90

With respect to Ashford in Surrey, the TW15 postcode, the average rent per calendar month, according to the home.co.uk site, comes in at £1097 per calendar month, or £253.15 per week.

London is not typical in the UK lettings market

The following information outlines how much of a deposit a tenant may have to pay for a deposit in Ashford in Kent:

  • For a five-week cap, the average deposit would be £1,265.75
  • For a six-week cap, the average deposit would be £1,518.90
  • For a seven-week cap, the average deposit would be £1,772.05

While the sums of money associated with a deposit in these locations are nowhere near the level a tenant would have to pay in London, they may still represent a challenge to tenants. It is important that people remember what value for money for them is, may be a difficult amount of money for someone else, so it is vital that tenants consider their own finances and budget before making a commitment.

These are significant sums of money that would need to be found in advance of renting property, so you can see why many tenants are under considerable pressure. Obviously if all goes well with the property, this deposit will be returned at the end of the tenancy, but the money must be provided in the first place.

No matter what position you have with respect to rental property, it makes sense to get help from the experts. If you are looking to make a move and you need some guidance, contact Jezzards today on 03330 433 633 and we will be more than happy to help.


Author

Jezzards Estate Agents

9-11 High Street Hampton TW12 2SA United Kingdom (033) 3043 3633 email (020) 3725 3022 Hampton TW12 2SA, Surbiton, Surrey, KT6 7AB


 

 

What our clients say about us

  • " Jezzards managed to let my property within four day's of commencement of marketing activity. I found both Sam and Tiernan to be proactive, professional and approachable, and the impression I have garnered is that one will be in good hands with this company. These are the first agents I have used that employ professional photographers, which I found impressive and is in itself symbolic. In short, so far so good. "

    Gideon, Feltham April 2018
  • " I was provided a thoroughly professional service throughout, kept up to date and consulted on every aspect of the marketing of the property, the viewings and feedback, the offers and all the way through to the sale of the house itself. I found everyone I dealt with to be friendly, courteous and highly professional including Tiernan and Abigail who were active in the sale and especially Lowen who was always an absolute pleasure to talk to and who did a fantastic job on securing the sale on the house at a price I was very happy with. I would have absolutely no hesitation in recommending Jezzards and was extremely thankful to them for dealing with everything so well in what was a difficult time personally. "

    Rob, Hampton April 2018
  • " I found Jezzards Estate Agents incredibly professional and their service outstanding, in particular Abigail Ramsey whom I dealt with. Their advertising is of very good quality and it includes the virtual tour which is an excellent addition to the photos and the floor plan. The whole process was very smooth and I was being kept informed and updated on a regular basis. I would highly recommend Jezzards to anyone looking to buy or sell a property. Their professional attitude, friendliness, very personal and attentive approach together with a great knowledge of the market makes them one of the best agents I’ve ever dealt with. "

    Edyta April 2018
  • " I am really happy with my experience with jezzards. They done everything within their power to ensure my property was rented.. this included over 25 viewings attended by sam or tiernan. Great job "

    Benjamin, Ashford March 2018
  • " Excellent customer service, all staff very helpful polite and professional at all times, I would highly recommended Jezzards as an estate agent ! "

    Sandra March 2018
 
model