With many landlords and letting agents now demanding tenant deposits equivalent to six weeks, many renters across the country are required to stump up more than £1,000 to secure the keys to a new home before they have even paid the first month’s rent, and that is simply too much, according to the head of Canopy.
Tahir Farooqui, CEO and founder of Canopy believes that the simplest and most effective solution to offer a better deal for renters is to provide an alternative to deposits, especially as the amount required has now “spiralled out of control”.
Canopy, which has just received £1.6m in funding from strategic investors including £1.3m from Direct Line Group, aims to offer renters an opportunity to use an app to eliminate the need for tenancy deposits and help strengthen their Experian credit history by paying rent on-time.
The Canopy service is based around a RentPassportTM, which provides proof of an individual’s rental and credit history and their ability to pay rent promptly. This helps both landlords and agents to pre-approve renters, saving them significant time with the vetting process. It is also a record of trust and credibility for renters.
Farooqui said: “As rents have risen across the UK, the deposits required to even enter the UK rental market have spiralled out of control. Canopy has both the technology and relationships in place to empower renters and help them to eventually become buyers.”