Renting finance platform Zero Deposit has launched a flexible version of its deposits service to enable tenants to pay just two days’ worth of rent to secure their deposit on a property, rather than paying up-front.
The company is also enabling tenants to remain in control of their deposit options during the tenancy, allowing them to switch to a traditional cash deposit at any point.
Zero Deposit Flex is designed to be a hybrid ‘lifetime deposit’ of the kind Ministers are considering as they prepare plans to usher in their Renting Reform Bill.
The CEO of Zero Deposit, Sam Reynolds (main image), says this is because his firm’s new product enables tenants to avoid having to ‘double deposit’ when moving home while still offering landlords comparable security against unpaid rent or damage to a property.
Using average rental data, Reynolds claims tenants in a shared property could secure their deposit for approximately £7.50 a month paid over 12 months, which is the ‘Guarantee’ cost to them of not paying a cash deposit.
But this does not include the £49 set-up fee charged by Zero Deposit, although the costs of paying their Guarantee each time they move goes down over the years.
Zero Deposit will launch the product across a number of its partner agents in June 2022 before an anticipated roll out across the base later in the year.
Paul Deveney (pictured), Group Director & Head of Residential Lettings at The Acorn Group, says; ”We’ve keenly observed Zero Deposit’s traction within our branches and it’s clear that this product is being favoured more and more by tenants versus a cash deposit.
“We continue to believe that a fully regulated, insurance-backed alternative is the best choice available to our landlords and that this new option clearly answers the Government Lifetime Deposit challenge.”
Read more stories about lifetime deposits.