Tenancy deposits in London over the last year were more than twice as expensive on average as the rest of England and Wales, statistics released by The Deposit Protection Service (The DPS) have shown.
By law landlords must ensure deposits from tenants are protected by an authorised tenancy deposit protection scheme, and those submitted to The DPS for properties with London postcodes between March 2014 and February 2015 averaged £1,721.96: more than double the national average (£819.35).
Julian Foster, managing director of The DPS, said: “Tenancy deposits give landlords the security they need while their property is being rented out.
“Tenants are also provided with peace of mind when The DPS protects the money during their tenancy, as it provides free, impartial adjudication if there is a dispute at the end of the tenancy.
“Both landlords and tenants need a deposit protection service that is fast, efficient, clear and communicative, and The DPS has been entrusted with over 3.2 million deposits since we launched in 2007.”
The DPS is the only scheme to offer a choice between schemes that are custodial – where it holds the money for the duration of tenancies – and insured – where landlords retain deposits but pay a fee to protect them.
Its custodial scheme is open to all letting agents, landlords and organisations, and there are no membership fees or qualifying criteria.
The DPS repays all deposits within two business days, on receipt of a jointly authenticated repayment instruction.
It also offers an independent, free alternative dispute resolution service, which aims to resolve any disputes quickly and without the need for court action.