Over half of renters who choose a deposit alternative are funding their moves with money saved by not having to pay a five week cash deposit, it’s being claimed. 

Reposit’s survey of over 1,500 tenants shows 55% were using the cash to help towards moving costs such as buying furniture. Nearly a quarter (23%) put the money into savings accounts, 4% invest elsewhere and 7% repay debts. 

The typical cash deposit is now £1,292 and rents now average £1,122 a month claims Reposit, whose chief executive Ben Grech says: “Moving is expensive and many tenants do so having just paid a new deposit of over £1,000 while waiting for their previous lump sum to be returned, leaving them struggling. [We’re] helping to solve these kinds of affordability problems faced by tenants everyday, providing the financial breathing space they need and allowing them to get on with their moves.  

“Instead of locking away their money in a cash scheme, tenants can earn interest and make their money work for them – a trend reflected in our survey results. It is a concerning misconception that cash deposits are ‘free’.”