A leading deposit replacement provider, Reposit, has announced a substantial 58% increase in sales during the first six months of 2026. This significant growth has been largely fuelled by a booming build-to-rent (BTR) sector, where sales more than doubled compared to the same period in 2025, showing a 103% rise. The company also expanded its network, onboarding over 195 new agent partners across the UK.
Reposit's business model involves tenants paying a non-refundable fee equivalent to one week's rent, as an alternative to a traditional cash deposit. While tenants remain responsible for any damages at the end of their tenancy, disputes are handled by an independent resolution service, aiming for a resolution within 14 days. This service reportedly provided over £34 million in cover for landlords during the first half of the year, with more than £12.5 million exceeding the value of a standard five-week tenancy deposit.
The company also highlighted the financial benefits for tenants, stating that those utilising their service avoided over £17.2 million in upfront moving costs during the period. This translates to an average saving of £1,088 per tenancy, a considerable sum given the current economic climate and the rising cost of living. Such savings can be particularly impactful for first-time renters or those facing multiple moving expenses.
Ben Grech, chief executive of Reposit, attributed the surging demand to a growing industry interest in alternatives to traditional tenancy deposits, particularly following the implementation of the Renters' Rights Act. He noted that the company's sustained growth and new partnerships, including becoming Goodlord’s exclusive deposit replacement partner in May and an agreement with Mydeposits, demonstrate a broader industry embrace of new operational methods. An integration with Let Alliance and HomeLet’s Vision+ tenant referencing and tenancy management platform was also launched.
This shift in the rental market comes amidst a challenging period for many, with average UK house prices remaining high. While specific, recent nationwide data from sources like Rightmove, Zoopla, or Halifax would provide a clearer picture, the overall trend has seen sustained pressure on affordability. Mortgage rates, while fluctuating, have also added to the financial burden for potential homeowners, indirectly pushing more people into the rental market where upfront costs can be a significant barrier. Innovations like deposit replacement schemes aim to alleviate some of these initial financial hurdles for renters.
For landlords, especially those in the rapidly expanding build-to-rent sector, these schemes offer a streamlined approach to tenancy management and provide financial protection. The growth in the BTR sector itself suggests a long-term strategic investment by developers, responding to a consistent demand for high-quality rental properties. The ongoing evolution of landlord-tenant legislation, such as the Renters' Rights Act, continues to shape the operational landscape for all involved in the UK property market.