Feb

New: Young and old tenants alike spending fortunes on deposits

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Shocking new research shows some tenants are spending up to 138% of their monthly salary on a rental deposit.

Renters over 60 need to fork out the same chunk
of their monthly salary on a deposit as their grandchildren, finds new research
on average tenancy deposits in the UK.

With more older people living in the rental
sector, along with a fall in the number owning their own home, tenant deposit replacement
scheme Ome says its findings show that those aged 60-plus
spend on average 68% of their salary to secure a rental property – the same as
those aged 22-29.

And its women’s pockets which are hit hardest,
as while it works out at 55% of men’s salary, it’s 88% of women’s.

“Those in the youngest age groups tend to be
on the lowest wages and as a result, have to pay out more of their monthly wage
on a deposit, but more often than not they have a support network of family
that can help them start out on their rental journey and contribute to some of
the costs,” says Ome co-founder,
Matthew Hooker.

“However, this isn’t always the case for
those 60 and above who may be on a lower wage and don’t have the option to
borrow from friends or family.”

Those aged between
18-21 have it toughest with the average tenant deposit, according to Ome, accounting
for 118% of an average young person’s monthly salary.

This falls to 105%
for men, while female tenants in this age range are looking at an eye-watering 138%
of their net monthly wage to cover a deposit.

With the average rental deposit currently
setting tenants back £1,139, men need to spend 47% of their monthly net income
on a rental deposit, climbing to 69% for women.

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