A spokesman for a leading sales and lettings firm is highly dismissive about proposals for landlords to start charging new tenants higher deposits.

In the last month an organisation of Inventory Clerks has called for landlords and lettings agents, to significantly increase the amount of deposits that tenants pay to secure their accommodation, in spite of research clearly showing that since 2007 deposits have rocketed by 25%.

Ajay Jagota of the sales and lettings firm, scornfully dismisses the proposals by saying that it is: “a really great idea, assuming your plan is not having any tenants”. 

 

The organisation of the Inventory Clerks states that the average tenancy deposit now stands at £1198, up £304 from £894 in 2007.

Yorkshire and Humber have the cheapest average deposits costing new tenants £593, with the

North East being close runners up with £603.

 

The Association has also sent out the message that deposits do not always sufficiently cover landlords' damage and wear and tear, and that new tenants will expect fixtures/fittings, carpets and bathrooms to be in a good state. 

Ajay said: “The sad thing is, the analysis is pretty much on the money. A standard deposit will almost never meet the cost of any serious damage to your home or any legal fees you’ll ever incur as a landlord. You may as well not bother. 

“Unfortunately, their recommendations are only a really good idea assuming your plan is not having any tenants.

 “Figures from the Office of National Statistics recently showed that the cost of living is currently rising four times faster than wages. Other reports suggest wages will fall in real terms for at least the next three years.

 “With deposits already up by a quarter over the last 7 years, even an extra £150 would mean deposits all but doubling in less than 10 years. With wages down 3% in the same period, all you’d be doing is pricing people out of properties.

 “All you want as a landlord is to find and keep good tenants. So why make it harder? "