Far from flat: Deposit alternative boosts partnerships by 88%

Deposit alternative provider, Flatfair, has boosted its partnership numbers by 88% in the first half of 2024, welcoming 61 new clients including agents and Build to Rent operators.

Concept Estate Agents, Dandara Living, The Property Centre, Turay Homes, and Urbanbubble are among the property companies now offering tenants the option to save money on move-in costs and landlords added protection.

Gary Wright, CEO of Flatfair, attributes this success to the rising popularity of their latest deposit alternative solution, Flatfair Deposits: “There is currently no product on the market like Flatfair Deposits, which explains the soaring demand. Our solution eliminates the lengthy admin process associated with registering traditional deposits and opens up a new revenue stream for agents while providing tenants with a valuable deposit alternative.”

Wright adds: “Once agents experience our platform and realise there is no cost to them, the decision is straightforward.”

Growing demand

The growth in popularity of deposit alternatives is clear, with 56% of tenants choosing flatfair No Deposit over a traditional deposit when displayed with the two options side by side.

This shift is likely influenced by the increasing cost of living and rent prices. According to HomeLet, rent prices in June were 5.7% higher than the same time last year, leading to a corresponding increase in traditional deposit payments.

Tenants typically need to pay around £2,922 when moving into a new property, which includes their 5 week deposit and first month’s rent.”

Given the current average UK rent, tenants typically need to pay around £2,922 when moving into a new property, which includes their 5 week deposit and first month’s rent. This excludes all of the other expensive costs associated with moving homes.

Flatfair claim the average tenant choosing No Deposit has saved £1000 on their upfront move-in costs, with many tenants saving considerably more.