40% boost in No Deposit tenancies for flatfair

Despite turbulent times for the Private Rented Sector (PRS), deposit alternative specialists, flatfair, have experienced a record year in sales.

The company says that the cost of living crisis and higher rents have contributed to the rise in No Deposit tenancies, as renters source new methods of reducing their move-in costs while landlords seek out greater protection in the event of damages and missing rent payments.

flatfair has seen a 40% increase in No Deposit tenancies from Q2 and a 26% increase year-on-year.

CEO, Gary Wright, said, “Both landlords and tenants have been under increasing financial pressure over the last few years.

“Rising rents have meant that traditional deposits have gone up substantially, impacting the cost of moving.

“Tenants save around £1200 by choosing our No Deposit product – money which can be better spent on new furniture or to save for the duration of their tenancy.

Valuable time savings

“Landlords, on the other hand, are looking for greater protection during times of change in the PRS. More landlords are now benefitting from the comfort of knowing they have double the protection against damages or missing rental payments with our No Deposit product.

“We’re talking about market-leading protection – up to 10 weeks for damages and/or rent arrears and it doesn’t cost them a penny. We also attempt to collect all outstanding charges over the 10 weeks too, whereas with a traditional deposit, landlords must attempt to recover these costs themselves – often an exhausting and ultimately fruitless task.”

Wright believes agents using flatfair benefit from valuable time savings too, from the company’s extensive partnerships with the major CRM’s.

“It’s a win-win for all parties – particularly in the current climate where there is new legislation to re-shape the sector and everyone is still reeling from the cost-of-living crisis.”

The latest data from flatfair indicates a 10% increase in rents compared to the same period last year with the average tenant forking out £3,271 on their first month’s rent plus 5-week traditional deposit.

“That’s a hefty sum to have to stump up when you’re about to move home,” said Wright.

“Which is why, when offered No Deposit or traditional deposit side by side, 56% of tenants choose our product.”