UK Rental Deposits Jump by Over £220

The average rental deposit in the UK has risen sharply from £948.88 in 2022 to £1,170.63 by May 2025, according to new figures released by The Deposit Protection Service (DPS). This represents an increase of over £220 in just under three years.

The DPS, which safeguards tenancy deposits across the UK, stated that the rise in average deposits reflects a broader and sustained 23.36% increase in rental prices over the same period.

These figures highlight the deepening strain on renters already grappling with high inflation, a cost-of-living crisis, and limited housing supply. The surge in deposits not only mirrors rising rents but also increases the upfront financial burden on tenants trying to secure a property.

While deposit amounts are typically capped at five weeks’ rent, the growth in average deposits strongly indicates a jump in rental values. A deposit of £948.88 in 2022 equates to a monthly rent of around £822, while the new average of £1,170.63 implies a rent closer to £1,015—confirming the 23% increase.

The DPS said the upward trend suggests that landlords are raising rents across most property types and regions, potentially in response to increased mortgage costs, higher maintenance expenses, and changes in rental regulations.

The rising deposits are a double-edged sword for tenants: not only are monthly housing costs higher, but the initial move-in costs have also grown significantly. For many, especially younger renters or those on lower incomes, saving for a deposit is becoming a greater hurdle.

Housing campaigners and tenant advocacy groups warn that the widening affordability gap may push more people into insecure housing or shared accommodation, or even out of the private rental sector entirely.

As the rental market continues to evolve, experts say that further policy interventions may be needed to balance the interests of landlords and tenants. Discussions around rent controls, increased housing supply, and tenant support schemes are likely to remain high on the political agenda in the run-up to the next general election.

For now, the data from The DPS paints a clear picture: the cost of renting in the UK is rising steeply—and tenants are paying for it upfront.