"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"
- Ben Grech - Reposit
Renters in the UK may need as much as £3,450 upfront to move home, excluding rent, according to new analysis from deposit alternative provider Reposit.
The figure reflects a common but often overlooked pressure point in the rental market: the gap between paying a new deposit and recovering the previous one. Where a tenant's existing cash deposit remains tied up at the start of a new tenancy, they may need to fund two five-week deposits simultaneously.
Based on an average monthly rent of £1,133, a single cash deposit currently stands at £1,308. When doubled, that rises to £2,616, and with £834 in moving costs added, the total upfront outlay reaches £3,450.
Reposit's analysis suggests the equivalent cost for a tenant using its product would be £1,356.92, based on the same monthly rent and moving costs, plus two Reposit fees of £261.46 each. That represents a potential upfront saving of more than £2,000, or 61%, depending on how the deposit is structured.
"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," said Ben Grech, chief executive of Reposit.
"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."
Grech argued that deposit alternatives can ease that pressure without reducing landlord protection. "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. With higher inflation and interest rates around 4.5%, we're increasingly seeing tenants look at Reposit as a better value for money vs a cash deposit."
Rather than paying a five-week cash deposit upfront, tenants using Reposit pay a non-refundable fee of one week's rent. Tenant liability for damage at the end of the tenancy remains unchanged, with disputes resolved through an independent resolution service within 14 days.
Standard referencing checks apply, including an affordability assessment requiring a salary of at least 30 times the monthly rent, and a guarantor option is available where needed.
The findings add to a growing body of evidence that the cost of moving itself has become a material affordability issue for renters, many of whom are already managing elevated housing costs.
