RESIDENTS moving into new properties can expect to fork out more than £805 in deposit costs – and they are being warned to expect further increases in the coming years.

The Deposit Protection Service's (DPS) quarterly tenancy deposit ratings revealed that those renting a home in the 'WA' postcode between April and June had to put down on average £806.79 as a deposit when moving in – £163, or 16.8 per cent, cheaper than the national average.

Julian Foster, DPS managing director, said: "Tenancy deposits give landlords peace of mind when they rent out property but they are usually large sums and are often the most financially demanding aspect of moving house.

"Both landlords and tenants need a deposit protection service that is fast, efficient, clear and communicative."

Manoj Patel, director at Hamlet Homes, which is based on Crosfield Street, is telling residents to expect costs to increase.

He said: "The upfront cost of moving into a rental property in Warrington is usually made up of three parts: tenant admin fees, deposit and first month's rent.

"With average monthly rental for a property in Warrington at £624 per calendar month and deposit figures typically equal to a month's rent, the upfront move in costs can be substantial.

"When agency admin fees are added, the figure can easily get close to £1,500.

"While financially demanding on the tenant, deposits are taken to give the landlord piece of mind when they rent out a property that any damage caused by the tenant during the tenancy can be recovered and the property put back to its original state.  

"Deposits have to be lodged with a Government approved deposit protection scheme – and thus offers peace of mind to the tenant as well, as an independent third party will adjudicate over any claims made by the landlord against the deposit.

"This stops spurious claims being made, which was common prior to the introduction of this legislation.

"The figures released by the DPS show the average deposit taken in the WA postcode is £806.79.

"This is higher than I would expect for Warrington but the 'WA' postcode also includes places such as Altrincham, where the average rents are higher.

"In Warrington only, with an average rent of £624, I would expect the deposit amount to fall in a similar range of the average rent.

"With the announcement last week in the Chancellor's Autumn Statement to ban agents admin fees, I expect to see a slight increase in rents over the coming years as these costs are pushed down to the landlord.

"The knock-on effect will be an increase in the corresponding deposits as well over the coming years as the two are intrinsically linked."