Alternative deposits firm ‘has saved tenants £40m’ – claim

Despite inflation dipping to 3.4% rental costs increased massively in 2023 and are due to continue rising - and Flatfair says it's got a solution.

flatfair deposits wright

Flatfair says agents could save tenants around £1,000 on their upfront move-in costs by offering them the choice of its ‘no deposit’ product, and that its service has already created savings worth £40m.

Rental costs increased massively in 2023 and are due to continue rising in 2024 – despite inflation dipping to 3.4% in February. But that means that the cost of deposits have risen too.


Gary Wright, Chief Executive of the deposit alternative company, says: “Everyone has suffered during the cost-of-living crisis – including landlords and tenants.”

But he claims: “Overall, Flatfair tenants have saved over £40 million in upfront move-in costs by opting for our lower upfront deposit costs of one-week’s rent +VAT as opposed to the standard five-week traditional deposit. By doing this, our tenants save, on average, £1,000 on their upfront move-in costs.”

Last month, digital mortgage lender Molo revealed that nearly 60% of UK landlords have seen a rise in late rental payments, with average arrears amounting to £723.

Wright adds: “The maths is simple. The average number of arrears would be more than wiped out by the average saving of using our deposit alternative.”


“It gives tenants a real cash boost at the start of a tenancy – at a time when moving costs are mounting up. Our deposit alternative also provides landlords with market-leading protection of up to 10 weeks – double that of a traditional deposit.

“As a company, we manage both traditional deposits and our deposit alternative.

“But when times are hard, as they are now, and everyone is less financially resilient, we think agents might welcome the opportunity to make life a little easier for their tenants by offering them the choice to reduce their upfront costs. Especially when there is no cost to them.”

Flatfair is integrated with all UK deposit schemes including the Deposit Protection Service.

One Comment

  1. Ridiculous assertions:
    1. The tenants only “save” £1000 by not paying much of a damage deposit, which leaves the landlord much more exposed if there is a dispute at the end of the tenancy.
    2. Flatfair hasn’t “saved” tenants £40 million. It’s just left the money in tenants’ hands, where it will also still be if they behave themselves during their tenancies. In the meantime Flatfair has removed £40 million from the pot of money available to protect landlords, so it’s clear who’s losing out.
    3. And to suggest that landlords only experience £723 rent arrears because the funds would otherwise be available from a deposit is simplistic in the extreme. The rent arrears are there for a reason – fecklessness, financial incompetence, loss of job – in which case the £1000 will almost always be spent on something else, not used to pay the landlord!

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