NLA to ‘recommend’ Zero Deposit to its members...

The National Landlords Association (NLA) has identified Zero Deposit as the only deposit replacement product worth recommending to its members.

The landlord association is endorsing Zero Deposit after entering a new agreement with the deposit replacement firm.

Zero Deposit’s tenant’s deposit replacement product is fast becoming a major part of renting for letting agents, landlords and tenants across the UK.

A number of 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, co-founder and CEO of Zero Deposit, said: “Landlords have had a tough time of late and have found themselves having to navigate through a pretty hostile market, with ever more changes to regulation and the tax regime.

“One area offering some respite is the burgeoning deposit replacement market. Deposit replacement offers landlords the same security as a cash deposit with the added benefits of enhanced cover and shorter void periods.

“Our exclusive partnership with the NLA gives its member landlords peace of mind that by choosing Zero Deposit as their preferred deposit replacement provider, landlords are not only picking the market leader, but also the most secure product in the industry.”

“We are already working with more than 2,100 letting agency offices across the UK and have covered over 11,000 tenancies to date. Adding the NLA to our list of partners is an exciting next step for us as we continue to expand and make Zero Deposit the go-to product in the sector.”

The partnership with the NLA is part of a long line of affiliate activity designed to promote Zero Deposit and their best practices in industry.

Richard Lambert, CEO of the NLA, commented: “We looked very carefully at this market and considered the various products available.

“Zero Deposit is the best organisation to recommend to our members, because they have thought through and answered all the issues, and gave us the reassurance that both the company and the product were regulated by the FCA.”

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Robert Brown
02 August 2019 20:13 PM

I agree. The only cost to decent tenants in lodging a deposit is the loss of interest. Once a tenant has moved 5 times he has lost the equivalent of the new 5 week deposit using these rip off schemes. I would never rent to someone who couldn't afford or get organised enough to save the normal deposit or who didn't intend to ensure they merited full deposit refund.

Nigel Ethelston
08 February 2021 16:12 PM

Totally agree! Unfortunately, I suspect letting agents are pushing these policies. I only became aware of one of mine going down this route three days before the start of a new tenancy. Moral of the story, be clear to your agent and make sure the advert doesn't include this option.