Reposit has warned that tenants could face upfront costs of up to £3,450 when moving home, excluding rent, as overlapping deposits create a growing affordability squeeze.
New analysis from the firm shows the total is driven largely by the need for renters to fund two deposits at once – one tied up in their current tenancy and another required to secure their next property – alongside average moving costs of £834.
Based on an average monthly rent of £1,133, the typical five-week deposit stands at £1,308. When doubled to reflect both outgoing and incoming tenancies, this rises to £2,616, pushing total upfront costs to £3,450 once moving expenses are included.
The findings underline a persistent pressure point in the rental market, particularly where delays in deposit returns leave tenants needing to bridge the gap themselves.
SAVINGS TO BE MADE
Reposit said the equivalent cost using its deposit alternative product would be £1,356.92 under the same rental scenario, including two fees of £261.46 and the same moving costs. This represents a potential saving of more than £2,000, or 61%, depending on how the deposit is structured.
The data suggests that the cost of moving itself is becoming a key affordability barrier, at a time when renters are already contending with elevated housing costs and wider cost-of-living pressures.
AFFORDABILITY CHALLENGE
Ben Grech (main picture), Chief Executive Officer of Reposit, says: “Many renters expect their deposit to be returned in time to help fund their next move, but in reality that money is often still tied up when a new tenancy begins.
“That can create a significant affordability challenge at the point of moving, particularly when removal costs and other household expenses are added into the mix.
“Products such as Reposit can help reduce that upfront burden, giving renters more flexibility at what is often an expensive point in the moving process. For tenants, there’s also a lot of reassurance gained by using an FCA-regulated product.
“And importantly, landlords can still benefit from protection equivalent to up to eight weeks’ rent, around 60% more than a traditional cash deposit.”
