Tenants moving between rental properties have around £2,652 tied up in cash deposit schemes as they await the return of their lump sum from the home they are vacating, an industry company claims. 

Reposit says the average five week cash deposit increased to £1,345 in August 2024 from £1,307 in August 2023.

The firm also claims that a five week cash deposit has increased by 4% since the start of this year – almost double the rate of inflation.

Ben Grech, chief executive of Reposit, says: “Deposit alternative products alleviate the age-old problem for tenants of how to fund their next deposit while awaiting the return of their previous one. Using our latest figures, this means that instead of having to raise a total of £1,345 for a cash deposit, a tenant pays £269 instead. 

“The tenant can keep hold of £1,076 and our research shows most choose to put this money towards their moving costs and buy essentials such as furniture. For others who choose to invest it, they can benefit from around 4% in interest while having the flexibility to keep hold of their cash.”