Deposit alternative provider flatfair has called for greater transparency, tenant choice and stronger operational standards across the rental sector following recent concerns raised by Citizens Advice about renters’ experiences with deposit products.
Property Soup revealed last week how Citizens Advice found that 48% of renters who used a letting agent – equivalent to almost four million people – encountered practices that breached existing rules, raising fresh questions about standards and enforcement in the private rented sector.
The charity also reported that some tenants using deposit alternative schemes felt they had not been given a clear choice when arranging a tenancy, with some renters claiming they felt pressured or misled during the process.
Now Gary Wright (main picture, inset), Chief Executive of flatfair, says the findings should be taken seriously by the lettings industry and highlights the need for clear communication and informed decision-making throughout the tenancy journey.
CONCERNING
He says: “The findings from Citizens Advice are concerning and should not be dismissed.
“Any situation where a tenant feels pressured, misled or unclear on their options is bad for renters, bad for landlords and bad for trust in the lettings sector.”
Wright argues that while regulation has an important role to play, raising standards requires responsible product design and clear operational processes as much as formal oversight.
According to flatfair, tenants should always be given a genuine choice between a traditional cash deposit and any alternative product, supported by transparent pricing, straightforward documentation and clear explanations of how each option works.
GENUINE CHOICE
Wright says: “A deposit alternative should never feel mandatory, confusing or like a way around consumer protection.
“It should be a genuine choice for the tenant, clearly explained, properly controlled and supported throughout the tenancy.”
The company says it has built its model around structured onboarding, clear guidance for agents and a customer journey designed to ensure tenants understand their options before making a decision.
Wright also points to wider issues highlighted within the Citizens Advice report, noting that concerns were not limited to deposit alternatives but extended across tenancy processes and the handling of traditional deposits.
IMPROVING STANDARDS
He says the sector should focus on improving standards across the board rather than viewing innovation as the problem.
“The lesson from this report is not that innovation should be discouraged.It is that innovation must be accompanied by transparency, genuine tenant choice and strong operational standards.
“When those foundations are in place, tenants benefit from greater flexibility, landlords remain protected and agents can offer solutions with confidence.”
flatfair says it remains committed to working with agents, landlords and policymakers to improve outcomes for renters while maintaining robust protections for property owners.
