With a sharp rise in the number of letting agents signing up to the Zero Deposit Guarantee, underpinning hundreds of tenancies across the UK, the people behind the scheme, predict that the tenant’s deposit replacement product, will soon become a major part of renting for agents, landlords and tenants across the UK.
Around 850 letting agents are now signed up to Zero Deposit’s FCA-regulated deposit replacement product, designed to reduce financial pressures on renters, while also offering greater security to landlords.
The insurance policy is underwritten by Great Lakes Insurance SE, part of the Munich Re Group, which the tenant acquires for a one off payment at the equivalent of one week’s rent, no matter the length of the tenancy, plus an annual admin fee of £26.
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.
Jon Notley, CEO and Co-Founder of Zero Deposit, commented: “Tenancies covered range from lower value lets in the regions through to high value London apartments. The product is appealing to all segments of the market with every age and property type covered.
“Tenants hugely appreciate the financial freedom our product offers, while agents and landlords are attracted to the genuine protection and credibility of our fully FCA regulated guarantee, with all of the safeguards that brings.”
A big development in recent weeks is the launch of Zero Deposit's Independent Agent product, which gives smaller agents access to the product for the first time.
Notely added: “We already have 30 independent agents live in our launch group, and many more who have expressed interest in joining our network.”
Having already rolled out to a number of larger agent groups in 2018, Notely is pleased to see the product now offered to the whole agent market, especially in light of the news that cash deposits are likely to be capped at five week's rent, whereas our product offers landlords six weeks protection.
It is important to point out that the scheme also offers referral commission to agents.
“With many hundreds of letting agent offices already live, and many more to launch in early 2019, we anticipate that Zero Deposit will become a major part of renting for agents, landlords and tenants across the UK,” Notely added.