The cost of the average deposit paid by renters has dropped to £1,299, new figures show.

The latest research from Hamilton Fraser’s deposit replacement scheme, Ome, reveals that in 2019 to date, existing tenants have collectively paid deposits worth £1.9bn.

But the amount paid for the average deposit is due to drop for the first time in five years, already down 3% from last year’s average of £1,336, although it is still 7% higher than in 2015.

So far in 2019, the number of new deposits being taken has dropped by 17% when compared to last year, while the total value of these deposits is also down 19% from some £611m to £496m.

Looking over the last five years, the number of new deposits being taken has fallen by 22%, while the total value is down 17% when compared to last year.

Matthew Hooker, co-founder of Ome, said: “We’ve seen a decline in the number and value of new deposits being taken over the last few years and a driving factor behind this is a change in our lifestyle choices to rent for longer, which reduces the number of deposits being taken and the total value as tenants opt to stay put in the same property.

“Although the average cost for the individual tenant has continued to climb due to increasing rents which form the basis of the deposit calculation, this year looks to be the first in a long time that we might actually see this cost drop.

“This has largely been driven by new legislation that has reduced the number of weeks rent an agent or landlord can charge for both a holding and tenancy deposit.”