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



Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

view article
maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

view article
maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

view article
zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

view article
Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

view article
Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article
sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

view article
Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

view article
Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

view article
Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

view article

Related stories

More articles from Landlords