Reposit’s Growth Signals a Shift in Deposit Practices: What London Landlords Need to Know
Reposit’s rapid expansion in 2025, including partnerships with over 300 agencies and major Build To Rent operators, highlights the growing role of FCA-regulated deposit alternatives in rental agreements. London landlords should reassess their deposit strategies, understand regulatory nuances, and prepare to engage tenants and agents on these flexible financial products.
Why Reposit’s Expansion Matters to Landlords
Reposit, an FCA-regulated deposit alternative provider, has reported a striking 53% business growth in 2025 and expanded its network to over 300 letting agencies, including significant Build To Rent (BTR) operators. This growth reflects a broader market trend: increasing adoption of deposit alternatives alongside or instead of traditional cash deposits.
For London landlords, where upfront rental costs can be a barrier for tenants, these products offer a way to reduce upfront cash demands while maintaining financial protection. However, the shift requires landlords to understand the product mechanics, regulatory framework, and communication responsibilities.
Understanding FCA-Regulated Deposit Alternatives
Deposit alternatives like Reposit operate under FCA regulation, designed to protect landlords while offering tenants a more affordable route to securing a tenancy. Instead of paying a cash deposit, tenants pay a non-refundable fee (typically a fraction of the deposit amount). In the event of damages or unpaid rent, landlords claim directly from the provider.
This model contrasts with traditional deposits held in government-approved schemes, which must be returned to tenants if no deductions are necessary. FCA regulation ensures providers meet standards for financial conduct, offering landlords recourse without holding large cash sums.
Practical Implications for Different Landlord Profiles
- Single-Unit Landlords: May find deposit alternatives streamline tenancy set-up and reduce disputes over deposit returns.
- HMO and Portfolio Landlords: Managing multiple properties, these landlords can benefit from reduced administrative burden and improved tenant affordability, potentially lowering void periods.
- Accidental Landlords: Often less familiar with tenancy compliance, they should seek advice to understand how deposit alternatives fit within their existing processes.
Reviewing Your Deposit Handling Practices
Landlords should immediately review how they currently handle tenancy deposits:
- Assess Current Deposit Schemes: Are you using a government-approved scheme? How might deposit alternatives integrate or replace this?
- Evaluate Tenant Demographics: Are your tenants likely to benefit from lower upfront costs?
- Understand Contractual Differences: Deposit alternatives often require different tenancy agreement clauses and clear tenant explanations.
Engaging with Agents and Tenants
Since Reposit’s model relies on letting agents for implementation, landlords should:
- Discuss Options with Agents: Understand what deposit alternatives your agents offer and their processes.
- Communicate Clearly with Tenants: Ensure tenants understand the non-refundable nature of fees and implications for tenancy end.
- Monitor Regulatory Updates: FCA requirements can evolve; staying current prevents compliance risks.
Next Steps for Landlords
- Schedule a Compliance Review: Audit your tenancy agreements and deposit handling for compatibility with FCA-regulated alternatives.
- Engage Your Letting Agent: Request a briefing on their deposit alternative products and tenant education protocols.
- Plan Tenant Communications: Develop clear, written explanations about deposit alternatives to include at tenancy sign-up.
- Benchmark Locally: If data on uptake or claims is unavailable, consult local agent networks or landlord forums to gauge market adoption.
How Rentals & Sales Can Support You
Our landlord intelligence hub offers tailored portfolio reviews and compliance audits to help you adapt deposit handling practices efficiently. We provide up-to-date guidance on FCA-regulated products, tenant communication templates, and pricing strategy advice to optimise rental income and tenancy security.
Compliance Disclaimer: This article provides general information and does not constitute legal advice. Landlords should consult professional advisors or legal experts to ensure compliance with evolving tenancy deposit regulations and FCA rules.