Around a third of tenants, 34%, are putting off moving home because they cannot afford the cost of a traditional five-week cash deposit, according to new research from Reposit, highlighting how tenancy deposit costs are creating a real barrier for renters who need or want to move.
Reposit's data shows the average deposit has now reached £1,351 in 2026. As a result, tenants moving between properties often have more than twice this amount tied up at once, while funds are transferred from one tenancy to the next.
The research was based on a survey of 1,000 tenants carried out by the deposit replacement firm. It formed part of a wider report on the lettings market titled 'Renting Under Pressure', which Reposit authored using a combination of tenant surveys, observations from agent partners and the firm's own proprietary data.
Affordability concerns appear to be deepening rather than easing. Half of tenants, 51%, now expect renting to become less affordable, suggesting many believe financial pressure within the rental market is here to stay.
Several letting agents who contributed to the report pointed to a shift in landlord behaviour, with many becoming more sensitive to risk following the Renters' Rights Act. Among those agents:
- 60% cited concerns over rent arrears
- Many reported landlords taking a more cautious approach to tenant referencing
- Several noted growing interest in alternatives to traditional deposits
"The findings highlight a market shaped by affordability pressures, rising regulation and shifting landlord behaviour," said Ben Grech, CEO of Reposit (pictured).
"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."
He added that flexible deposit options could help ease some of this pressure. "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."
