New research has shown that tenants are embracing the idea of schemes designed to replace traditional tenancy deposits.
The You Move survey found over half of the 3,752 tenants asked would be interested in an alternative approach to tenancy deposits, including zero deposit schemes.
Zero deposit schemes see tenants pay a non-refundable fee into a scheme – usually around a week’s rent – rather than having to find six weeks’ rent as an upfront deposit.
The fee is underpinned by an insurance policy, and should the tenant be responsible for any loss or damage, the scheme will pay the landlord compensation and recover the costs from the tenant directly.
Advocates say the scheme reduces financial pressures on renters, while also offering greater security to landlords
The research by Your Move also found 70% would be influenced by the availability of schemes like this when deciding whether to rent a specific property.
Helen Buck, executive director for estate agency at Your Move parent company LSL, said: “There is clearly demand for an alternative to cash lump-sum deposits.
“With more and more people now choosing to rent, it’s increasingly important that lettings agents are able to cater to tenants of all types, providing them with both choice and flexibility.”
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