An average North East deposit will cost you more than £600 – and could set you back as much as £1135
Figures from Dlighted’s friends KIS Group – the first lettings agent in the UK to abolish deposits – indicate that the value of an averge tenancy deposit in our native North East is currently £605.
This figure is based on one month’s rent – the level the government is currently planning to cap tenancy deposits at.
On a city-by-city basis, renters will need to find the following figures just to start renting a property:
- Newcastle £821
- Sunderland £533
- Durham City £893
- Tynemouth £1135
Average deposits in areas like Blyth and Easington will provide landlords with only £412 and £420 of protection against rent arrears and property damage.
KIS’ figures show properties in the region are currently valued 5% higher than this time last year – £7500 in cash terms.
Investors in North East property currently see an average return on their investment of 4.3% – a higher level then London.
Ajay Jagota, founder of Dlighted, the deposit replacement insurance scheme delivering a Zero Deposit renting solution an alternative to the cash Tenancy Deposit schemes of TDS, DPS and Mydeposits, responded to the figures.
Dlighted’s deposit free renting insurance policy offers landlords over £600,000 of asset and income protection for rent, damage and legal cover.
“The North East’s rising property prices and stable rents are fascinating results on the back of a party conference season which saw the Conservatives promise to expand Help to Buy to boost the housing market and Labour promise to cap rents.
“There’s no question that the original Help to Buy was fundamental to the resuscitation of the North East property market. To me it makes more sense now to combine it with reform of the tenancy deposit system, helping landlords get better protection though insurance policies and helping renters put money aside for properties of their own – for example, by allowing them to convert their deposits into Help to Buy ISAs.
“For now at least, the North East property market is in a good place, and the engine room of growth appears to be the North of the Tyne, where North Shields and Whitley Bay are out-performing the rest of the region and Tynemouth is close to becoming the first area in the North East where average prices exceed £300,000.
“As ever, I’m left asking if the housing policies emerging from the political establishment really are right for our region.”