Flatfair says agents could save tenants around £1,000 on their upfront move-in costs by offering them the choice of its ‘no deposit’ product.
Rental costs increased massively in 2023 and are due to continue rising in 2024 – despite inflation dipping to 3.4% in February.
But that means that the cost of deposits have risen too.
COST-OF-LIVING
Gary Wright (main picture), Chief Executive of the deposit alternative company, says: “Everyone has suffered during the cost-of-living crisis – including landlords and tenants.”
But he claims: “Overall, flatfair tenants have saved over £40 million in upfront move-in costs by opting for our lower upfront deposit costs of one-week’s rent +VAT as opposed to the standard five-week traditional deposit. By doing this, our tenants save, on average, £1,000 on their upfront move-in costs.”
Last month, digital mortgage lender Molo revealed that nearly 60% of UK landlords have seen a rise in late rental payments, with average arrears amounting to £723.
SIMPLE MATHS
Wright adds: “The maths is simple. The average number of arrears would be more than wiped out by the average saving of using our deposit alternative.
“It gives tenants a real cash boost at the start of a tenancy – at a time when moving costs are mounting up. Our deposit alternative also provides landlords with market-leading protection of up to 10 weeks – double that of a traditional deposit.
“As a company, we manage both traditional deposits and our deposit alternative. But when times are hard, as they are now, and everyone is less financially resilient, we think agents might welcome the opportunity to make life a little easier for their tenants by offering them the choice to reduce their upfront costs. Especially when there is no cost to them.”
Flatfair is integrated with all UK deposit schemes including The DPS.
