Double deposits leave tenants facing thousands in moving costs

Tenants are having to spend thousands of pounds in upfront costs to move home, according to new data.

A study by deposit alternative supplier Reposit reveals that tenants face £3,450 in upfront costs to move home, excluding rent.

The total is based on a scenario in which tenants are required to cover two cash deposits worth five weeks’ rent at the same time, one tied up in their existing tenancy and another needed to secure their next home, alongside £834 in moving costs.

Money is still tied up when deposit begins

According to the research, the average cash deposit currently stands at £1,308 for a home with a monthly rent of £1,133.

When doubled to reflect both an outgoing and incoming tenancy, this rises to £2,616, bringing the total upfront cost of moving to £3,450 once moving costs are included.

Ben Grech, CEO of Reposit, explains deposits are a hidden cost of moving.

He said: “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.

“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.”

The news comes as the government has published guidance on deposits when giving notice to tenants under the Renters’ Rights Act.

The government says landlords must place a tenant’s deposit in a government-approved tenancy deposit scheme such as the Deposit Protection Service (DPS), MyDeposits or the Tenancy Deposit Scheme (TDS).