Tenants moving between properties are tying up a total of £2,524 in cash deposit schemes as they await the return of the lump sum from the home they are vacating while paying a second deposit for their new tenancy, research has found.
Compiled by Reposit, the data shows the average five-week cash deposit rose from £1,228 in December 2024 to £1,296 in December 2025.
Combined, this leaves tenants paying £2,524 highlighting the large costs continuing to squeeze tenants.
The figures also show that the average five-week cash deposit increased by 6% over the past year, almost double the rate of inflation, which stood at 3.2% in December. Cash deposits rise in line with monthly rents, which have now reached £1,123.
COMMON MISCONCEPTION
Ben Grech (main picture), CEO of Reposit, says: “There’s a common misconception among tenants that their deposit will be returned directly to their bank account.
“In reality, it’s often rolled over to a new tenancy and, with rents rising and deductions from previous tenancies, many tenants find they need to top it up.
“We know that around 40% of renters borrow money to raise a cash deposit. Options such as Reposit are designed to address this, without tenants having to rely on credit cards or loans.
“Tenants pay a non-refundable fee equivalent to one week’s rent.”
“By using an FCA-regulated product such as Reposit, tenants pay a non-refundable fee equivalent to one week’s rent, allowing them to keep the rest of their cash free for immediate, practical uses such as covering moving costs or earning interest of around 4% in savings accounts.
“Importantly, landlords remain protected by cover equivalent to up to eight weeks’ rent, providing around 60% more protection than a traditional cash deposit.”
