Tenancies ending with arrears of more than five weeks’ rent have leapt to 17%, new research reveals.

The findings from deposit alternative platform Reposit show that landlords needed to reclaim at least five weeks of rent to cover costs such as arrears or damage.

Higher figure

This figure rose 4% from a previous average of 13% last year.

Reposit examined its own data from tenancy agreements that have come to an end during 2024.

So far this year, Reposit found 49% of agreements ended without any costs incurred by the tenant.

Ben Grech, CEO of Reposit, says: “The figures highlighted how cash deposit schemes did not always provide landlords with the right level of protection because they were capped at 5 weeks’ worth of rent.

“Our figures show cash deposits are now inadequate across a significant portion of the market and one which is growing, most likely caused by the cost of living crisis.”

Average arrears climb

Earlier research from Reposit, showed that average rent arrears claims climbed to £1,816 in the first quarter this year – a rise of 27% from £1,435 in the same period last year.

Arrears claims rose from an average of £1,507 in January this year to £2,097 in February and hit £1,845 in March.

And during the first three months of 2024 the percentage of tenants ending their tenancy with any unpaid rent increased to 18% – up from 15.3% last year.

Elsewhere, research by rival deposit alternative firm Zero Deposit revealed that the cost of rent outpaced salary growth by 5.2% over the past 10 years.