Tenancies ending with more than five weeks’ rent arrears have surged to 17%, according to recent research from deposit alternative platform Reposit.
The report highlights that landlords increasingly need to reclaim at least five weeks of rent to cover costs such as arrears or damages. This represents a significant increase from last year’s average of 13%, marking a 4% rise.
Reposit’s data, drawn from tenancy agreements that concluded in 2024, revealed that 49% of tenancies ended without any costs incurred by the tenant.
Commenting on the findings, Reposit CEO Ben Grech stated, “The figures underscore that traditional cash deposit schemes, which are capped at five weeks’ worth of rent, often fail to provide landlords with sufficient protection. Our data indicates that cash deposits are becoming inadequate across a growing segment of the market, likely driven by the cost of living crisis.”
Further research from Reposit showed that average rent arrears claims soared to £1,816 in the first quarter of this year, a 27% increase from £1,435 in the same period last year. January 2024 saw average arrears claims of £1,507, which then jumped to £2,097 in February before settling at £1,845 in March.
The first quarter of 2024 also saw a rise in the percentage of tenants ending their tenancies with unpaid rent, climbing to 18% from 15.3% the previous year.