Analysing data from the Tenancy Deposit Scheme highlights the enormous difference between parts of the UK and throws up an interesting seasonal anomaly to ponder.
The average cost of a deposit has risen by £304, or 34%, since 2007 when the Tenancy Deposit Scheme was launched. Data from Mydeposits shows that the average tenancy deposit now stands at £1,197.73 – up from £893.82 seven years ago.
The data shows the average value of a tenancy deposit has risen steadily since 2007. And looking at each of the seven annual cycles in turn since the Tenancy Deposit Scheme launched, a pattern has emerged. The average value of deposits has increased throughout the year with the exception of every Q3, where a sharp decrease has been recorded.
“While it’s no surprise that deposits have steadily risen over time it is interesting that Previewwe experience a sudden drop in average deposit values in Q3 each year. This is most likely to represent seasonal trends in the housing market due to student rented accommodation, where smaller deposits are typically required,” says Mydeposits chief executive and new redress ombudsman Eddie Hooker.
This decrease in average deposit values during Q3 is a strange anomaly. In its latest research report, Prime Central London estate agency, W.A.Ellis (in conjunction with independent property intelligence company, Dataloft and leading data provider Lonres) took a detailed look at the lettings market in Prime Central London. Their data agrees with the fact that that the lettings market has become more seasonal – but revealed that properties let between July and October accounted for over half (51%) of all lettings in 2013. They also revealed that over the last 10 years, properties marketed in November have taken 25% longer to let than those in September. Clearly, waiting to start assignments until November may mean that assignees will face less pressure to make the snap decisions that are required in August and September.
According to Mydeposits, the most expensive average deposit paid by tenants is in London at £1,760.30 followed by the south east at £1,181.99. The cheapest average deposit is in Yorkshire and Humber (£592.75) and north east England (£602.38).