New data shows that the average cost of a tenant's deposit is now £1,299.

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A specialist insurance services provider's latest research shows that from the beginning of 2019, renters have paid in total £1.9bn in deposits.

However the average deposit paid is looking likely to fall for the first time since 2014 and has already dropped by 3% from 2018's average of £1,336; it is still 7% higher than in 2015.

There has been a 17% drop in the number of new deposits this year in comparison to 2018, which is 'mirrored' by a 19% drop in the total amount paid from £611m in 2018 down to this year's £496m.

Over the last five years the data shows that the number of new deposits has dropped by an overall 22%.

Matthew Hooker, said: “We’ve seen a decline in the number and value of new deposits being taken over the last few years and a driving factor behind this is a change in our lifestyle choices to rent for longer, which reduces the number of deposits being taken and the total value as tenants opt to stay put in the same property.

“Although the average cost for the individual tenant has continued to climb due to increasing rents which form the basis of the deposit calculation, this year looks to be the first in a long time that we might actually see this cost drop.

“This has largely been driven by new legislation that has reduced the number of weeks rent an agent or landlord can charge for both a holding and tenancy deposit.”