There has been a significant increase in the number of letting agents signing up to the Zero Deposit Guarantee, which currently underpins hundreds of tenancies across the UK, ahead of the introduction of the Tenant Fees Bill on the 1st June 2019.
Around 1,300 letting agent offices 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, co-founder & CEO of Zero Deposit, said “A year on from our launch, we are delighted with the progress that we have made in all segments of the letting agency market and the quality of agents that we are attracting to our network.
“We now have more than 1,300 agent offices live and this number is growing every week as landlords and tenants become increasingly aware of the deposit replacement option that we can provide.”
“Our message is clear. If agents are going to offer a deposit replacement to their tenants, it is vital that they put the best possible protections in place for their landlords. We believe that this includes ensuring that your chosen product is regulated by the FCA, with all of the associated safeguards.”