Shocking new research shows some tenants are spending up to 138% of their monthly salary on a rental deposit.
Renters over 60 need to fork out the same chunk of their monthly salary on a deposit as their grandchildren, finds new research on average tenancy deposits in the UK.
With more older people living in the rental sector, along with a fall in the number owning their own home, tenant deposit replacement scheme Ome says its findings show that those aged 60-plus spend on average 68% of their salary to secure a rental property – the same as those aged 22-29.
And its women’s pockets which are hit hardest, as while it works out at 55% of men’s salary, it’s 88% of women’s.
“Those in the youngest age groups tend to be on the lowest wages and as a result, have to pay out more of their monthly wage on a deposit, but more often than not they have a support network of family that can help them start out on their rental journey and contribute to some of the costs,” says Ome co-founder, Matthew Hooker.
“However, this isn’t always the case for those 60 and above who may be on a lower wage and don’t have the option to borrow from friends or family.”
Those aged between 18-21 have it toughest with the average tenant deposit, according to Ome, accounting for 118% of an average young person’s monthly salary.
This falls to 105% for men, while female tenants in this age range are looking at an eye-watering 138% of their net monthly wage to cover a deposit. With the average rental deposit currently setting tenants back £1,139, men need to spend 47% of their monthly net income on a rental deposit, climbing to 69% for women.