"Our figures are a stark reminder of the rising costs facing tenants and the eye-watering sums now needed to fund two separate cash deposits"
- Ben Grech - Reposit
Compiled by deposit alternative supplier, Reposit, the data also shows the average cash deposit has increased by 13% since the beginning of the year when it stood at £1,168.
The figures demonstrate the difficulties facing tenants considering they often have to raise the funds for a second deposit when moving properties while waiting for their first to be returned after being tied up in a cash deposit scheme.
Based on Reposit’s figures, this means tenants are having to raise a second lump sum of £1,321. Combined with their average deposit from 12 months ago of £1,287, that’s £2,608 that a tenant has tied up in cash deposits.
Ben Grech CEO of Reposit, comments: “Our figures are a stark reminder of the rising costs facing tenants and the eye-watering sums now needed to fund two separate cash deposits.
“Deposit alternative products, which are FCA-regulated, can facilitate a better solution for tenants, who pay one week’s rent as a non-refundable fee instead of 5 weeks’ rent at the start of their tenancy and also offer landlords eight weeks of protection.
“Taking our latest figures as an example, instead of having to raise a total of £1,321 for a five-week cash deposit, a tenant pays £246 instead. This means the tenant can keep hold of £1,075 and use it however they see fit - maybe to buy new furniture or to invest in a high-interest savings account.”