The average rental deposit paid by tenants has fallen by 10.3% since the introduction of the tenant fee ban in June 2019.
The figure comes from recent research conducted by Hamilton Fraser’s deposit replacement scheme Ome.
The research examined the average cost of a rental deposit in the six months prior to the introduction of the fee ban, and how prices compared in the following six months.
The data showed that the average tenant was paying £1,098 for a rental deposit in the six months prior to the ban, but this has dropped to £985 in the six months following.
The biggest decline was in the south west, where the average rental deposit has fallen by 15.8% to £1,040.
The second largest decline was in the west midlands, where average costs fell by 14.2%. There was an 11% decrease in average prices in the south east, while in London the cost declined by 7.9.
The north east is the only region to have seen an increase, where the average deposit increased by 5.3%.
Co-founder of Ome, Matthew Hooker, said: “Many in the industry were fearful that the ban on tenant fees and a five-week rental cap where deposits are concerned would lead to a hike in rents for many tenants.
“However, it looks to have had the desired impact in many regions of the UK, with tenants now paying a good chunk less in order to secure their rental property.”
He added: “Of course, it may take some time before the true impact of such a major change surfaces and we could still see an increase in costs seep into the market.
“For the time being, however, the cost of a traditional deposit for the nation’s tenants is slightly more palatable and for those that are still unable to accumulate this upfront wealth, they have the choice of a deposit replacement such as Ome that allows them to pay small monthly fees instead of a large upfront deposit.”