Deposit Alternative growth shows greater acceptance by agents - claim

Reposit has increased the number of agencies offering its deposit alternative product.  

This increase in agent customers comes as Reposit reports growth of some 596 per cent over the last four years, despite a downturn in tenancy volume across the lettings market.    

Chief executive Ben Grech says: “The growth we’ve seen in sales reflects how landlords, tenants and agents across the rental market are increasingly viewing deposit alternative products as a valuable solution for the industry.

"Deposit alternative products were highlighted in the updated 'How to Rent' guide, published by the government earlier this year which explains tenants may be offered deposit replacement products as an alternative to a cash deposit.

"We’re pleased to see the government’s acknowledgement that deposit alternatives are an increasingly relevant part of the UK's private rented sector. Equally we support the message that tenants should check if the product they’re offered is FCA-regulated."

Reposit says that tenants who choose it are charged one week’s rent as a non-refundable fee instead of having to find five weeks’ rent at the start of their tenancy. In turn, landlords receive up to eight weeks’ worth of rent as protection against dilapidations and arrears.

Latest letting agencies to sign up to Reposit include Berkley Estate and Letting Agents in Leicester, Three Oaks Estates in Ilford, City Relay in London and Morfitt Smith in Sheffield.