Latest Figures Reveal the Cost of Deposits in NI

New figures released today (14 August 2013) by the Tenancy Deposit Scheme Northern Ireland show that local tenants are paying higher deposits than previously estimated.

TDS Chief Executive Steve Harriott stated, “Initial statistics from our first month in operation already give an added insight into the private rented sector. The average deposit of £558 is far higher than previous estimates, but similar to the average monthly rent in the Metropolitan Belfast area of £561. This is consistent with a typical deposit of four weeks’ rent, so we can be confident the figures are representative of the current market.”

Previous research by the Housing Executive estimated a much lower value of £294 per tenancy.

This research confirms the results of a survey conducted by Housing Rights Service earlier this year which found that the average rent for a 2 bedroom property in NI was £484 with the average deposit amounting to £480. The largest deposit was £675 for a letting in Belfast.

In regard to the largest financial outlay expected from tenants taking on a private letting, we found one Belfast letting agent charging a non–returnable fee of £40 for both a tenant and guarantor credit reference check, on top of a deposit and rent in advance (both £675), therefore requiring an initial upfront payment of £1,430 for the tenant to move in.

Housing Rights Service believes there is a real danger that these high upfront charges are preventing some people on low incomes from finding suitable private rented accommodation and could be adding pressure on already over-subscribed social housing waiting lists. There is also evidence to show that some agents and landlords are demanding double the value of typical deposits if tenants are unable to find guarantors to support their applications.

The TDS press statement is here.