London remains most expensive place to rent in the UK

Renting in London’s most exclusive area has become slightly cheaper in the past six months – but the capital remains by far the most expensive place to rent in the UK.

Newly published research from The Deposit Protection Service (DPS) reveals that Westminster remains the most expensive area in the UK, measured by the average deposit demanded by landlords.

However the average deposit has fallen slightly in the past six months, from £1,909 to £1,890.

The cheapest place to rent a house in England and Wales – knocking Tony Blair’s old constituency Sedgefield from the bottom spot - is Rhondda, Cynon Taff in Wales, where the average deposit value has increased by £5 from £321 to £326.

Kevin Firth, director of the DPS, said: “Our bi-annual deposit index looks a lot like the Premier League table – there is some jostling for position at the top but it is still the same familiar names in the shake up!

“What it does show is that at a time when house prices are plummeting, rental values are holding up comparatively well – and that could explain the hundreds of new landlords the Deposit Protection Service signs up every day.”

Since 6 April 2007, every deposit-taking landlord and letting agent in England has to use one of two tenancy deposit protection methods: a custodial or insurance based scheme, for any new or updated tenancies.

The DPS works by holding a tenant’s deposit, free of charge, for the term of the tenancy agreement. Since launch, The DPS has already returned in excess of £105 million of deposits.

Under the legislation, landlords who fail to register a deposit face being fined up to three times the value of the deposit and losing their eviction rights.

For more information, visit depositprotection.com