Tenants delay moves over cash deposit costs

Landlords and letting agents face a tougher moving market as tenants struggle to find the upfront cash deposit needed to move home.

Research from Reposit says 34% of tenants are delaying a move because they cannot afford a five-week cash deposit.

The deposit replacement firm says the average deposit in 2026 has reached £1,351, leaving some tenants with more than twice that amount tied up while deposits are transferred between properties.

Expecting deposit alternatives

The firm’s chief executive, Ben Grech, said: “The findings highlight a market shaped by affordability pressures, rising regulation and shifting landlord behaviour.

“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 tenants should be offered flexible deposit options and that 91% of renters are expecting alternative deposit products.

Renting is more expensive

The findings are based on a survey of 1,000 tenants and appear in Reposit’s Renting Under Pressure report.

It draws on tenant responses, feedback from agent partners and the firm’s own data.

Affordability concerns are also becoming more entrenched, with 51% of tenants saying they expect renting to become more expensive.

Letting agents who contributed to the report also pointed to landlords becoming more sensitive to risk following the Renters’ Rights Act.

Also, 60% of agents say they have growing concerns over arrears.