A scarcity of rental properties has pushed up the initial cost of securing a home by as much as 24% in some parts of the country – despite the tenant fees ban.
According to rental deposit replacement scheme Ome, while the cap seems to have had the desired effect, with the initial cost of renting in England down 2% year-on-year, some areas have bucked the trend.
Corby (pictured) has seen the cost of securing a rental deposit rise by 24% since this time last year, while Exeter and Charnwood have also seen a jump of 23%.
Oxford, Newcastle-under-Lyme, South and West Oxfordshire, Chiltern, Liverpool, Doncaster, Rushcliffe, Haringey and Bristol have also seen a double-digit increase.
Ome looked at the current initial cost of securing a rental home since the tenant fee ban was introduced last June – based on one month’s rent plus a deposit of five weeks’ rent – and found that tenants are now paying £1,897 upfront; £843 for their first month’s rent, plus a deposit of £1,054 at five weeks’ rent.
While in London, tenants are paying 5% less compared to last year, those in the South West are facing costs up 4%.
Kingston upon Hull is the cheapest place to secure a rental property with an initial outlay of £986, while York is the best place for tenant affordability, as costs have dropped by 18%.
Ome Co-founder Matthew Hooker says: “There’s no doubt that the tenant fee ban has had an impact on the affordability of renting. However, while some have seen the cost of securing a rental property drop, tenants in many parts of the national rental market have still seen sharp increases.
“This increase will have been driven mainly by a reduction of rental accommodation to meet demand as many buy-to-let landlords reconsider their investments due to a string of Government changes to the sector.”