More than a third of tenants are delaying a move because they cannot afford the upfront cost of a traditional tenancy deposit, research from deposit replacement provider Reposit reveals.
The firm’s latest report, Renting Under Pressure, found that 34% of tenants have postponed moving home because they cannot afford to provide a five-week cash deposit.
Reposit said the findings highlight the growing affordability challenges facing renters, with the average tenancy deposit now standing at £1,351 in 2026. In many cases, tenants can have more than £2,700 tied up while waiting for one deposit to be returned before funding another.
The report, based on a survey of 1,000 tenants alongside feedback from letting agents and Reposit’s own market data, suggests financial pressures within the private rented sector show little sign of easing.
LIMITED SUPPLLY
More than half of tenants (51%) expect renting to become less affordable in the future, reflecting growing concern about housing costs and limited supply.
The research also points to a changing landscape for landlords and agents following the introduction of the Renters’ Rights Act. According to the report, 60% of letting agents said landlords are becoming more risk-conscious, with concerns around rent arrears featuring prominently.
The findings suggest agents are increasingly balancing the need to improve affordability and accessibility for tenants while also providing reassurance to landlords concerned about risk and compliance.
DRIVING GROWTH
Ben Grech (main picture), Chief Executive Officer of Reposit, says: “The findings highlight a market shaped by affordability pressures, rising regulation and shifting landlord behaviour.
“For letting agents, success will depend on how well they respond to these forces by removing barriers for tenants, managing risk for landlords, and using market insight to drive growth.
“One way agents can achieve this is by offering the choice of more flexible deposit options. Our research found strong demand for such solutions amid ongoing affordability pressures, with 91% of tenants expecting products like Reposit to see wider adoption across the rental market.”
The report suggests deposit replacement products could become increasingly common as tenants look for ways to reduce upfront moving costs and agents seek solutions that support affordability without increasing landlord risk.
Read the full report HERE.
