The government is touting the information that it is going to make it easier for renters to begin a tenancy without a big deposit.
What the small print does NOT tell people is that they will need to pay the equivalent if (at least) a week’s rent for a NON-REFUNDABLE insurance policy to cover potential damage!
“… Groups representing tenants say they cannot see the benefits for most of their members.
Dan Wilson Craw from Generation Rent says zero-deposit schemes are an unnecessary expense for tenants.
“This is money that you will never see again, whereas with a standard deposit if you take care of the property you should get all that money back,” he says. “People need to realise that it’s not taking away their responsibility for keeping the home in good condition and paying the rent. If there are problems you will have to pay what they ask for.”
Even landlord groups are concerned. John Stewart, policy manager at the Residential Landlords Association, says he can see the potential for a loss-loss situation with this type of scheme.
For tenants, he says “it might cut the upfront fees but it is an absolute cost at the end of the day”, while for landlords it was unclear how long claims would take to be paid and what would happen if a scheme went bust.”