Tenants who move home are tying up an average of £2,524 in cash deposit schemes while waiting for their previous deposit to be returned and paying a new one, according to research from deposit alternative provider, Reposit.
The analysis shows the average five-week cash deposit increased from £1,228 in December 2024 to £1,296 in December 2025. Together, the outgoing and incoming deposits leave renters with more than £2,500 locked away at once, adding to pressure from higher rents and living costs.
Key findings from the data include:
Average five-week deposit in December 2025: £1,296
Average monthly rent: £1,123
Combined outgoing and incoming deposits: £2,524
Over the past year, the typical five-week cash deposit rose by 6%, almost twice the rate of inflation, which stood at 3.2% in December. Because deposits are linked directly to rent levels, the increase reflects broader growth in monthly rental payments.
Ben Grech, CEO of Reposit (pictured), said, “There’s a common misconception among tenants that their deposit will be returned directly to their bank account.” He added, “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.”
The company estimates that around 40% of renters borrow money in order to raise a cash deposit. Grech explained that alternatives aim to reduce this reliance on credit.
“Options such as Reposit are designed to address this, without tenants having to rely on credit cards or loans,” he said. “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.”
The findings underline how rising rents feed directly into higher upfront costs for tenants, particularly those who need to move before their previous deposit is released. For many renters, this creates a temporary but significant financial gap that must be bridged through savings or borrowing.
