The high value of homes in London is one of the main causes of housing issues. In addition to this fees for tenancy deposits are also incredibly high. This can put a lot of pressure on people looking to rent a home.
According to the latest figures the average tenancy deposit in London is £3,014. This is alarming, requiring the majority of new tenants to find a huge amount of money before they can even move into a home.
Although the average itself is worrying there are some areas that make it even more eye-watering. In Kensington and Chelsea for example the average is £8,650, the highest figure in the whole of London. Westminster follows with £8,081.
There are a number of areas that are more affordable though. Bexley has the lowest average tenancy deposit at just £1,655. Havering (£1,731), Croydon (£1,808), Sutton (£1,848), and Barking and Dagenham (£1,898) all offer prices better than the average for the whole of London.
The situation is a problem for a number of reasons. Firstly, it makes it challenging for people to raise the amount of money they need for a deposit. Secondly, it leaves billions of pounds in secure tenancy deposit accounts rather than injected into the economy. Finally, it could mean landlords are losing out on businesses because they price tenants out.
The Government tried to improve the situation with the draft Tenant’s Fees Bill. This set out that the deposit should be capped at six-weeks rent. The problem is that this doesn’t stop landlords from increasing the rent to drive the fees up.
At Finefair we understand the issues high deposits can cause. After-all we are a long serving lettings agent and the leading team for block management Bexley has. We work with landlords to help them find the perfect returns for their assets. This includes advice about deposits, physically collecting them, and ensuring we maintain the quality of properties.
If you have any questions about deposits or block management don’t hesitate to contact us.