Price cap leads to dip in value of tenancy deposits in England and Wales

The latest data released by TDS [The Dispute Service] shows a varied picture of deposit value changes over the last year.

In Scotland, the average deposit value was £748.75 – an increase of 2% over the previous year].

In Northern Ireland, deposits increased by just over 4% to £641.29.

However, in England and Wales there was a different picture, with the average deposit at the end of March 2022 being £1,016, a reduction of almost 1% from March 2021.

Steve Harriott, CEO at TDS commented: “The reduction in the value of tenancy deposits in 2021-22 in England and Wales is surprising given the increases in Scotland and Northern Ireland. It is likely however, that this is a result of the deposit cap, which restricts rents to a maximum of five weeks in England [and the cap does not apply elsewhere in the UK].

“We have all seen evidence of increasing rents and therefore deposits in the period after Christmas, so it’s likely that the figures at the end of March 2023 will show a more significant increase in deposit values in England and Wales”.

To read The TDS Statistical Briefing in full, click here.

 

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