The most expensive postcodes for rental deposits revealed

The most expensive postcodes for rental deposits revealed

0:01 AM, 23rd October 2023, About A year ago

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The postcodes with the highest rental deposit costs for tenants in England and Wales have been revealed.

The study by Zero Deposit analysed the current rent prices across every postcode and calculated the deposit required to secure a property based on five or six weeks of rent.

The average monthly rent across England and Wales is £1,294, which means the average tenant has to pay a deposit of £1,493.

However, this amount varies significantly depending on the location and can reach as high as £6,792 in some areas.

‘Rental deposit poses a significant financial obstacle’

The chief executive of Zero Deposit, Sam Reynolds, said: “The cost of renting is often the largest outgoing many tenants will have, but it’s fair to say that the cost of a rental deposit poses a significant financial obstacle before they can even secure a rental property to call home.

“For the average tenant, this cost currently sits at almost £1,500 across England and Wales which is a sizable sum in itself.

“However, depending on where you want, or need to live, a rental deposit is often far higher.”

He added that tenants in London predictably face the highest cost but across the nation there are plenty of ‘postcode pockets’ that are above the regional average.

Most expensive postcodes for tenant deposit costs

The firm’s study found that London postcodes dominate the top 10 most expensive postcodes for tenant deposit costs.

The SW7 postcode in Kensington and Chelsea ranks as the worst with an average deposit of £6,792.

Westminster’s W1 postcode comes second with an average deposit of £6,659.

The nearby SW1 and W8 postcodes have an average deposit cost of £6,182 and £6,167 respectively.

Camden’s NW8 postcode also requires tenants to pay over £6,000 upfront.

Only two postcodes outside of London make the top 10 list: the KT11 postcode in Elmbridge (£4,662) and Runnymede’s GU25 postcode (£4,463), both located in the South East.

Most expensive postcodes for rental deposit

The study also revealed the most expensive postcodes for rental deposits in other regions of England and Wales. They are:

  • East of England: AL6, Welwyn Hatfield, East Hertfordshire and North Hertfordshire, £3,433.
  • South West: GL54 Cheltenham, Cotswold & Tewkesbury, £2,416.
  • West Midlands: B29, Birmingham, £2,222.
  • North West: WA15, Trafford, Manchester and Altrincham, £2,045.
  • Wales: SA2, Swansea, £1,862.
  • East Midlands: NN12, West Northamptonshire, £1,810.
  • Yorkshire and the Humber: YO1, York, £1,795.
  • North East: NE2, Newcastle upon Tyne, £1,569.

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