Nick Dunning Associates is the latest letting agency to sign up to the Zero Deposit scheme, which offers a tenant’s deposit replacement product in the form of insurance, designed to reduce financial pressures on renters, while also offering greater security to landlords.
The deposit replacement scheme, launched earlier this year, allows tenants to acquire an insurance policy in lieu of a deposit.
Tenants signing up to the scheme will be required to pay the equivalent of one week’s rent for a Zero Deposit guarantee, a regulated financial product that offers the landlord effectively the same cover as a six-week tenancy deposit.
Matthew Hewitt, commercial director at Nick Dunning Associates, said: “Zero Deposit’s offering will reduce the upfront cost of renting for tenants, which in London and the South East where rents are high, is a barrier to moving.
“With this method of deposit guarantee becoming increasingly popular, we wanted to partner with a reliable organisation to ensure we continue to provide tenants with an invaluable service, whilst also continuing to protect our landlords.”
Under the terms of the scheme, tenants remain accountable for any damage or unpaid rents, with any disputes over claims by the landlord handled by the Tenancy Deposit Scheme (TDS), which has an exclusive partnership with Zero Deposit.
The Zero Deposit product will be offered through Nick Dunning Associates Townends letting agency network in London and the Home Counties; expanding into the Stirling Ackroyd network in September.
Ben Harris, sales director at Zero Deposit, commented: “We are excited that market leading agencies Townends and Stirling Ackroyd will be providing their tenants and landlords with our product, which really does benefit both parties.”