Tenancy Deposits Alternative Rolls Out Across North East
InsurTech company Reposit has partnered with estate agency network Pattinson to offer a tenancy deposit alternative across North East England.
The partnership with the region's largest independent agency network will help landlords to attract new renters and democratise the market by adding a wider demographic of potential tenants.
The pioneering scheme also protects landlords from issues covered by a traditional deposit, including rent arrears, damages, and end-of-tenancy cleaning costs.
According to a 2017 House of Commons briefing study, the North East experienced a 212 per cent increase in private rentals between 1996 and 2006.
Reposit's security deposit alternative requires only one week’s rent as a service fee upfront. For Pattinson’s tenants, this will average at £119, compared to £595 under a traditional deposit scheme. The landlord is added to a group insurance policy that is Financial Conduct Authority (FCA) approved and protected by the Financial Services Compensation Scheme (FSCS) FSCS.
Pattinson is offering Reposit to all new tenants that pass referencing. Rents with the agency range from £275pcm to £2000pcm across the region. Although Reposit might be seen as a solution for the lower end of the renting market, pound for pound, those paying higher rents have more to save upfront, given the higher deposits paid for those properties at the top end of the market, making it an effective option for virtually all renters.
Commenting on the partnership, Jonathan Parker, Pattinson MNAEA MARLA, Head of Residential Lettings, said:
"As a company it is important that we are at the forefront of change and embrace new solutions to existing issues. The 8 weeks of cover for our landlords was a key consideration, especially with traditional monetary deposits being capped at 5 week’s worth of rent come the 1st of June. Reducing move in costs will naturally be an attractive option for tenants when it comes to selecting a property.
"With FCA regulation and FSCS protection at the heart of Reposit’s product and a similar mindset to client care, our clients have the assurances they need. We are pleased to offer Reposit as an optional alternative to the traditional monetary deposit, therefore providing potential tenants with an informed choice over what route suits their circumstances best."