Scraping together a deposit as part of the rental process is always tough for the majority of tenants, with the average deposit amounting to £2,000. That’s a month’s take-home pay for anyone lucky enough to be earning the £38,000 average London salary.
Until recently, tenants have been required to put down the equivalent of six weeks rent, but the Government’s Tenant Fees Bill, which came into effect on 1 June 2019, capped deposits at five weeks rent.
Grace Miller & Co, in conjunction with ZeroDeposit.com, are now able to offer tenants an alternative to a cash deposit – a guarantee which they can purchase for the equivalent cost of one week’s rent. This can help speed up the renting process and reduce void periods.
A Zero Deposit Guarantee gives Landlords effectively the same protection as a six week deposit with every guarantee covered by Munich Re, one of the world’s largest re-insurance companies. Although other schemes are available, the Zero Deposit Guarantee is the UK’s only fully regulated deposit replacement guarantee.
Zero Deposit does not mean zero responsibility and the tenants remain liable for any damages or rent arrears.
If you would like further details on this, or would like to discuss the letting or sale of your property, please contact our Sales & Lettings Manager, Chris Brewer, on 020 8605 1300.
