A scheme to make renting more accessible by offering a one-off membership fee instead of a deposit has been rolled out to more potential customers.
Tens of thousands of tenants are expected to benefit from the deposit-free renting initiative, which is being run by property tech platform flatfair through a new partnership with estate agency Spicerhaart.
Any renters who sign up through Spicerhaart need no longer pay out a hefty deposit to secure their tenancy, instead they can sign up to flatfair’s online portal, paying the equivalent to one week’s rent.
In London, said flatfair, where the average six-week deposit is £2,144, the savings for tenants could be quite significant.
However, people will also benefit from full transparency into claims with an independent dispute resolution service to protect all parties against bogus submissions.
There would also be also discounts for ‘good’ tenants who paid their rent on time and cared for their rented home. And if there were any lawful claims for damages, this would be paid by the tenant at the end of their tenancy.
Flatfair said landlords benefitted from double the protection of up to 12 weeks’ rent instead of a six-week deposit, free debt recovery for additional claims, faster payouts and access to a larger pool of reputable tenants.
This is one of a number of schemes which have been launched or are under development in the UK to provide more benefits for tenants.
Similar schemes have proved very popular in Germany and Switzerland, according to flatfair, which describes its own version as a simple, safe and affordable alternative to deposits.
Chris Phillips, chairman flatfair, said: “With the current financial pressures of rising prices and wage stagnation in the UK, many people are feeling the financial pinch.
“It can be particularly acute when moving home and you have to pay for two expensive deposits that overlap between tenancies. Anything that can ease the pain and free hard-earned cash has to be good thing.”
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