Tenant deposits alternative Zero Deposit has launched, several months after it was originally expected kick-off, as deals with several key agents were negotiated.

Co-founded by Jon Notley, the former commercial director at ZPG, Zero Deposit now says it has the financial and distribution backing of Connells, LSL, Knight Frank and the Acorn Group.

“The robust nature of its offering is why we have given it our backing,” says Tim Hyatt, Head of Lettings at Knight Frank (pictured, left).

“Given the constant raft of legislative changes taking place in the lettings industry on an almost monthly basis, it is great to see such a positive, well-executed initiative coming to the market.”

Zero Deposit also has deals set up with the insurance company providing cover for its product, Munich RE as well as ZPG and TDS, which is providing its dispute resolution.

1,000 branches

The agent deals are arguably the most crucial, giving Zero Deposit access to tenants renting properties through some 1,000 branches across the UK.

This morning’s launch is restricted to the four named agents backing the venture and who will now be rolling out the Zero Deposit product, although Jon Notley says after a few weeks his company will be seeking to making it as “widely available as possible” and want agents to get in touch to talk about deals.

Zero Deposit offers tenants the ability to pay a week’s rent as a non-refundable ‘guarantee’ and in return they don’t have to pay the normal six-weeks’ rent deposit. Any disputes that then arise between a tenant and a landlord or agent over damage to a property are then handled by TDS.

The product is an insurance-backed entity and Zero Deposit, trading as Global Ventures Ltd, is a representative of an FCA-regulated firm, Resolution Compliance.

“We are delighted with the level of support and participation that Zero Deposit is attracting,” says Jon Notley (pictured, above).

“We have spent considerable time and resource developing the product with the support of our partners and with the aim of ensuring that Zero Deposit is the best in class.

Rob Sargent, CEO of The Acorn Group (pictured, left), says: “We look forward to giving our customers the choice of how they approach funding a new tenancy and considering the best use of their finances, over what is often a long term decision to rent rather than buy.”

Read about how Zero Deposit is funded.