Initial cost of renting falls 2% since tenant fee ban

The initial cost of renting has fallen by 2% year-on-year across England since the introduction of the tenant fee ban in June last year, according to research from Ome.

The rental deposit replacement scheme looked at the current initial cost of securing a rental home, based on one month’s rent plus a deposit of five weeks’ rent and how this has changed since last year’s tenant fee ban.

As a result, Ome found that tenants are now paying a total of £1,897 upfront, a 2% fall from this time last year (£1,931).

Ome suggested it’s a mixed picture regionally, however, with the cost of securing a rental property in London down -5% annually, while the South-West has seen an increase of 4%.

In terms of the highest outright cost, the research indicated that Westminster is home to the most significant financial hurdle for tenants where one month’s rent plus a five-week rental deposit will set tenants back £6,854. Kingston upon Hull is the cheapest place to secure a rental property, with the initial cost coming in at £986.

Ome co-founder, Matthew Hooker, commented: “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.

“Particularly in the current climate, we must work across the sector as a whole to ensure both landlords and tenants are looked after and there is enough stock available to service this demand.”

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