Mar

INSIGHT: Here’s why tenants shouldn’t complain about paying a deposit in the UK

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Research within the 15 largest rental markets around the world has found that some tenants are asked to put down 10 months’ rent or £6,145 as a deposit.

The UK is one of the most affordable places to begin a tenancy,
research among the world’s 15 largest private rental housing markets has
discovered.

As well as the first month’s rent, tenants in the UK must pay an
average deposit of £811 or a maximum of five weeks’ rent, as the law now
requires.

Only New Zealand and Turkey have lower deposits, although in Sweden
there are no renting deposits at all but, instead tenants must register with a
central national database which holds their rental payment track record.

But elsewhere it’s a different story. In Japan tenants must pay a
deposit equivalent to ten months’ rent or £6,145 and similarly South Korean
renters must also pay ten month’s rent as a deposit, or £4,360, the research by
alternative deposits provider Ome reveals.

In Denmark it’s three month’s rent or £4,432 while in the US tenants
pay three-and-a-half months’ rents or £3,547. And Swiss tenants are required to
pay as much as three months’ rent to secure a rental property, coming in at an
average cost of £3,542.

But in 24 of the 51 states in the US, there is no statutory limit on
security deposits and in these states, landlords and agents can legally charge
whatever they see fit.

Only a handful of countries have average deposits similar to ours
including Germany, Austria, Israel, Canada, Australia and France.

Co-founder of Ome,
Matthew Hooker, says: “Landlords need security to feel comfortable letting someone else
live in one of their largest assets.

“That’s why we’re focusing on how we can provide the landlord with the
exact same financial protection as a cash deposit, whilst reducing the upfront
costs to tenants when moving home to improve their day-to-day cash flow and
rental wellbeing.”

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