Security deposits aren’t fun topics. When moving from one tenancy to another, a deposit can be a huge sum to drop upfront – especially when you have other moving-related things to pay for.
Thankfully, there are limits in England on how much your landlord can ask for. Plus, you don’t always need to pay your deposit upfront anymore. With Lifetime deposits soon becoming available, Fronted can help make moving rental more affordable.
This article explains how much security deposit a landlord can ask for, whether a deposit can be more than rent, and how lifetime deposits work when using them for a new rental.
So, can a deposit cost more than rent?
Yes, your rental security deposit can be the same cost or more than one month’s rent.
In England, your landlord can only ask for a maximum of:
- Five weeks’ rent – If the annual rent is below £50,000
- Six weeks’ rent – If the annual rent is above £50,000
Some landlords only require four weeks’ rent for a deposit, but five weeks is generally considered the standard amount.
If your landlord asks for more deposit than this, it’s against the law in England. You can get help from your nearest Citizen’s Advice if you’ve been charged more.
What Happens When You Pay a Security Deposit?
All landlords and letting agents must pay your security deposit into a tenancy deposit protection scheme (also known as TDP).
These schemes are government-certified and are designed to protect your money for the duration of your tenancy, i.e., your landlord cannot access your money or spend it.
When your tenancy comes to an end, and you’ve moved out, your landlord advises you of any deductions they’d like to make (which you can dispute) before returning the money to you.
Do I Have to Pay a Deposit Upfront?
Traditional deposits must be paid upfront in one lump sum to your landlord or letting agent. Once paid, the money is moved straight into a tenancy deposit protection scheme.
However, you don’t have to pay your deposit upfront if you use a lifetime deposit. At Fronted, we provide monthly repayment plans that mean you can pay your deposit over time without impacting your landlord.
How Do Lifetime Deposits Work?
Lifetime deposits are a new way to pay a deposit on a rental property. With a Lifetime Deposit from Fronted, you don’t need to worry about saving up a deposit for your next place. Use the Lifetime deposit app to transfer your existing deposit and use that to move whenever you want. For free!
Your Lifetime Deposit amount remains the same as your existing deposit. If your next deposit is higher, you simply top-up the difference in-app. If your next deposit is less, we’ll send you the difference after you move.
The great thing about having a lifetime deposit as a renter, is that it'll move with you to new rentals at the end of a tenancy! This means that you won’t have to pay a new landlord a new deposit before you get any money back from your old landlord.