Ome: Commuter savings may help with rental deposits

Jessica Bird

May 21, 2020

mortgage travel

The average commuter now working from home or on furlough is making savings of £66 per month, according to analysis by deposit replacement company Ome. 

Now that tenants are able to look for and move into new properties due to the easing of lockdown restrictions, this money can be put towards rental deposits.

Three months of commute cost savings could boost an individual’s finances by £199, which accounts for 18% of the average rental deposit of £1,107.

In the North East, a three-month commuter saving of £212 could pay 35% of the average rental deposit.

The average saving in the North West (25%), Yorkshire and Humber (24%), East Midlands (24%) and West Midlands (23%) could account for more than 20% of the average rental deposit in those areas.

In London, the average commuter cost accounts for 12% of the average rental deposit.

The biggest boost at a local authority level is in Wales, with three months of commuter outgoings accounting for nearly half of the average rental deposit in Blaenau Gwent, while in England, this saving accounts for 39% of the average rental deposit in Middlesbrough and 32% in Dumfries and Galloway in Scotland.

Three months of commuter cost savings could also help reduce rental costs, covering 24% of the first month’s rent.

Again, this is highest in the North East where three months of money saved working from home could cover 43% of monthly rent, with London again the lowest at 15%.

Matthew Hooker, co-founder of Ome, said: “Now that there is an element of normality returning to the rental market in an operational sense, many tenants who needed to move will now be rushing to do so.

“However, the reality of a lengthy lockdown will mean many have seen the finances required to do so shrink and affordability will be more of an issue than it previously was.

“The silver lining is the money saved in commuter costs and for the majority this will be far higher than the average UK commuter, so while this saving won’t be huge when compared to the wider cost of renting, it will certainly help.

“In the current climate, tenants will be doing all they can to reduce their outgoing and saving on commuting, social activities and holidays should help with this.

“Products such as Ome also offer an alternative way to manage their rental outgoings with a far smaller upfront cost and a more manageable monthly fee.

“Those currently looking to move who are worried about their financial situation should do their research to maximise any reduction in upfront and ongoing costs, as there is plenty of advice available and plenty of products that can also help with other areas of life such as utility costs.”

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