Seven in ten prospective tenants registered with MovingSoon.co.uk, a website that advertises affordable housing for renters, believe deposit-free renting is a good idea.
The survey, carried out by MovingSoon, found that many prospective tenants would like to see private landlords adopt deposit-free renting schemes in order to make private renting more affordable.
With figures released by the Deposit Protection Scheme revealing that the average deposit for a rental property in 2017 was £967, many prospective renters simply cannot afford the upfront costs associated with renting a property privately.
But the study found that an alternative to a considerable-sized deposit, such as an insurance policy, would make the private rented sector far more attractive.
The cost of the one-off payment ‘insurance’ policy can often be paid by the tenant, the landlord or a letting agent.
There are several schemes available that allow the renter to move in to their next private rental home without having to fork out another month’s rent as a deposit.
Paul Malone, head of MovingSoon.co.uk, said: “Many home seekers remain frozen out of private renting due to large deposits.
“Prospective tenants registered with our site strongly like the concept of an insurance scheme but nearly half of them are undecided if the schemes are better in reality than paying a substantial deposit.
“Tenants have far more confidence in housing associations so private landlords need to build trust if they want to compete with social housing.”