Almost one in three private renters rank having a no-deposit option among the most important factors when choosing a home, putting it ahead of parking, pet friendliness and the reputation of the landlord or letting agent.
A survey of 1,000 private rented sector tenants by Reposit finds 33% cite a no-deposit option as an important consideration when deciding where to live. Respondents were asked to select the five factors most important to them.
That puts a no-deposit option level with transport links, also cited by 33%, and ahead of the number of bedrooms at 31%, parking at 30% and landlord or letting agent reputation at 27%.
Four in 10 renters also say keeping upfront costs as low as possible is “very important”.
RENT STILL DOMINATES
The fundamentals of price, location and property quality remain by far the biggest considerations.
Monthly rent tops the list, cited by 90% of respondents, followed by location at 85% and the condition of the property at 74%.
Local amenities are selected by 21%, energy efficiency by 16%, being pet friendly by 15%, outdoor space by 12% and schools by 8%.
The findings suggest affordability considerations extend beyond the monthly rent to the amount of cash tenants need to find before moving into a property.
Reposit says a traditional five-week tenancy deposit now averages £1,440.
STUDENT PRIORITIES
Upfront costs are also significant among students, with 39% citing deposits, no-deposit options and holding deposits as an important consideration when choosing a home.
That puts upfront costs ahead of bedroom size at 34%, transport links at 31%, nearby amenities at 25% and landlord or letting agent reputation at 23%.
Monthly rent remains the biggest consideration for students at 89%, followed by location at 76% and property condition at 64%.
Ben Grech (main picture), Chief Executive Officer of Reposit, says: “It’s no surprise that monthly rent, location and property condition dominate where renters decide to live, but what stands out is how highly upfront costs feature.
“In the wider PRS, having a no-deposit option is more important to renters than parking or the reputation of the landlord or agent. Among students, upfront costs rank ahead of bedroom size and transport links.”
“Affordability isn’t just about the monthly rent.”
And he adds: “It shows that affordability isn’t just about the monthly rent because renters also have to consider how much cash they need to tie-up before they can move in.
“Tying up the equivalent of five weeks’ rent in a cash deposit is a significant amount of money, particularly when tenants are also paying their first month’s rent and other moving costs.
“For landlords and letting agents, giving tenants greater choice over how they manage that upfront cost can therefore be an important part of the overall rental proposition.”
