Seven in ten prospective tenants registered with MovingSoon.co.uk believe that deposit-free renting is a good idea.
The survey, conducted by the website, which advertises affordable housing for tenants, found that many potential renters would like to see private landlords adopt deposit-free renting schemes in order to make renting more affordable.
With figures released by the Deposit Protection Scheme (The DPS) revealing that the average deposit for a rental property in 2017 was £967, many prospective tenants simply cannot afford the upfront costs associated with renting a private property.
However, the study also found that an alternative to a considerable deposit, such as an insurance policy, would make the private rental sector far more attractive.
The cost of the one-off insurance policy payment can often be paid by the tenant, landlord or letting agent.
There are currently several schemes available that allow the tenant to move into their next private rental home without having to fork out another month’s rent (or more) as a deposit.
Paul Malone, the Head of MovingSoon.co.uk, comments on the findings: “Many home seekers remain frozen out of private renting due to large deposits.
“Prospective tenants registered with our site strongly like the concept of an insurance scheme, but nearly half of them are undecided if the schemes are better in reality than paying a substantial deposit.”
He adds: “Tenants have far more confidence in housing associations, so private landlords need to build trust if they want to compete with social housing.”
Landlords, have you considered introducing an alternative to hefty deposits for your tenants?
At present, MPs are debating whether a deposit cap of five weeks’ rent could be beneficial to tenants. However, there are claims that this plan could result in more rent cheats, whereby tenants do not pay their final month’s rent. Are you concerned?