New figures show that the government’s proposed deposit cap will push average North East deposits towards the £1000 mark.
The Department of Communities and Local Government’s Draft Tenant’s Fees Bill was published yesterday. In addition to banning letting agent fees the legislation will cap Tenancy Deposits at the equivalent six week’s rent.
Research from North East sales and letting firm KIS – the first firm in the UK to abolish deposits – shows the average month rent of a North East home is currently £639 – meaning renters will in future face average deposits of £958 just to move in to a new home.
In more expensive areas this will mean deposits of:
- £1952 in Durham City
- £1717 in Tynemouth
- £1518 in Newcastle.
Even renters in Blyth – currently the cheapest place in the North East to rent a property – face tenancy deposits of a little under £640.
Dlighted’s replacement insurance policy offers landlords over £600,000 of asset and income protection from unpaid rent, property damage and legal fees.
“Rising rents are pushing up deposits, which doesn’t help renters. With the government deciding to cap deposits at 6 weeks rent, this means people looking to start tenancies in places like Durham City, Tynemouth and Newcastle will have to find between £1500 and £2000 just to move in. This is hardly a better deal for tenants when they could easily be renting deposit free.
“Yesterday I’ve said i was unconvinced by the Tenant’s Fees Bill. Today I’m wondering whether a piece of legislation literally designed to make it cheaper to rent a home will actually make it more expensive.”