Average cost of deposit approaches £1000

Average cost of deposit approaches £1000

According to the Association of Independent Inventory Clerks (AIIC), the spiralling cost of the average tenancy deposit means independently compiled inventories are now more important than ever.

The Deposit Protection Service (DPS) recently revealed that between April and June the average tenant had to pay a deposit of £970.48 when moving into a rental property. This figure was almost 5% higher than the one recorded between January and March and over 10% higher than the average cost of a deposit during the same period last year.

According to the DPS' data, the average cost of a deposit in the capital rises to almost £1,800.

The AIIC says that as the cost of deposits keeps on rising, landlords and tenants cannot afford to commence a tenancy without an independently compiled inventory.

Inventories comprehensively detail the condition and contents of the property at the beginning of the tenancy and should be signed and agreed by the tenant upon moving in.

Patricia Barber, Chair of the AIIC, had this to say: "With the average renter now paying a deposit of almost £1,000 to rent a property in the UK, it's vital that an independent inventory is carried out in order to protect both landlords and tenants."

Now that there are hundreds, and in some cases thousands, of pounds worth of damage deposits at stake during the average tenancy, deposit deductions or disputes at the end of the contract could be costly for both parties.


An independently compiled inventory can help landlords – or their letting agents – to ascertain the condition of their rental property at the end of a tenancy and any subsequent deposit deductions that need to be made.

Should a deposit dispute occur – the event when a formal dispute adjudication is taken on by one of the three government-approved deposit protection schemes – then a professional and independent inventory will help the acting scheme to make the correct and fairest judgement.

“Landlords who do not have a comprehensive inventory to hand at the end of a tenancy could make it extremely difficult for themselves to claim back funds for damages and lost items,” explains Barber.

She also advises tenants to take extra care when checking their inventory to make sure that all items initially listed are present.

“In the event items listed on the inventory are broken or lost, it can often be cheaper for the tenant to replace them rather than waiting till the end of the tenancy,” she says.

Join our mailing list:


Comments

  1. Sheryl87Sheryl8718 November 2016 09:24:18

    The high employment levels and the vibrant economy has led to ever-increasing demand for rental properties, especially from professionals relocations from other cities. This has led to more experts teaming up and looking for bigger flats.

    Reply to this comment

Leave a comment



Our Next Event

Buy-to-Let Roadshow April 2017

Buy-to-Let Roadshow April 2017

Crewe - 18/04/2017

Northampton - 19/04/2017

Essex - 20/04/2017

Brighton - 21/04/2017

Register now

Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

view article
ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

view article
NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

view article
Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

view article
Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

view article
Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

view article
Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

view article
James Powell
James Powell 27 Feb 2017

This is a very good news.

view article
DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

view article
Matt
Matt 20 Feb 2017

Is this fake news?

view article
Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

view article
CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

view article

Related stories

More articles from Landlords

Buy-to-Let Roadshow
April 2017

18th-21st April

4 days
7 specialists
4 locations
Free to attend

Click here to register now