We spoke to tenants living all over the country who were eager to share their experience with tenancy deposits. With more people renting than ever before in the UK and billions of pounds in deposits being kept either in a scheme or by agents themselves, we wanted to find out where tenants really find the money for their deposits... it's not necessarily where you think.
The number of households renting has multiplied in recent years, with an estimated five million renters now living in the UK. Of the tenants surveyed, 88% were aged between 18-35, in line with the PwC report stating that by 2025 59% of 20-39 year olds will be renting privately. 93% of tenants were living in rented accomodation with a protected deposit or had paid a deposit previously, with 7% renting without having paid a deposit.
Most revealing were the statistics on where the tenants who had paid a deposit had found the funds. Only 52% of tenants had funded their deposit from their own income/savings. Almost 40% of tenants had borrowed the cash: from family and friends (33%), overdraft facility (5%) or a bank/high-street/payday loan (3%).
Couple that with the fact that 40% of tenants are spending more than half of their monthly income on rent (seriously!) the upfront costs of moving home are getting steeper and more difficult to manage for the majority of UK renters. The most common reason for renting is to fund a deposit to buy a home, therefore many tenants would be a lot better off keeping those funds, earning interest or investing them to get on the property ladder. With the slump in UK house prices threatening a crash, and more people seeking to get out of the buy-to-let market, more people with the ability to buy would be great right now!
Unsurprisingly, 74% of tenants surveyed said they would rather pay a one-off fee of one week's rent than a full six weeks' deposit. Despite the fact that 93% of these tenants had paid a deposit, almost three in four said they would rather pay a smaller fee and keep the excess funds themselves.
This is where Reposit comes in! Offer your tenants the chance to save on upfront moving costs and watch your enquiries rise and void periods fall. Plus save time registering deposits and reduce admin paperwork. Most importantly, earn commission on each property let with Reposit and off-set the impact of the upcoming tenant fees ban.