The average value of new deposits has been driven down for the first time since 2015, research claims

Analysis of the number and value of new deposits taken by Hamilton Fraser’s mydeposits scheme – representing 25% of the market – between January and November found that the average protected amount has fallen 3% annually this year to £1,299.

It is the first drop in the average deposit value since 2015.

The total value has also fallen 19% annually to £495,677,600 while the number of deposits protected has declined 17% to 382,411, which was attributed to tenants now renting for longer.

The research said £1.9bn of deposits was protected this year nationally, down 19% compared with 2018.

Matthew Hooker, co-founder of Hamilton Fraser’s soon-to-be launched deposit alternative Ome, which conducted the research, said: “We’ve seen a decline in the number and value of new deposits being taken over the last few years and a driving factor behind this is a change in our lifestyle choices to rent for longer, which reduces the number of deposits being taken and the total value as tenants opt to stay put in the same property.

“Although the average cost for the individual tenant has continued to climb due to increasing rents which form the basis of the deposit calculation, this year looks to be the first in a long time that we might actually see this cost drop.

“This has largely been driven by new legislation that has reduced the number of weeks rent an agent or landlord can charge for both a holding and tenancy deposit.”