flatfair has reported a record year in sales, marked by a 40% increase in ‘no deposit’ tenancies from Q2, and a 26% boost year-on-year.
The rise was attributed to the cost-of-living crisis and higher rents, prompting renters to find ways to reduce moving costs while allowing landlords to seek more protection against damages and unpaid rent.
Gary Wright (pictured), CEO of flatfair, 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 £1,200 by choosing our No Deposit product – money which can be better spent on new furniture or to save for the duration of their tenancy.”
Wright added: “We’re talking about market-leading protection [for landlords] – 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.”
Data from flatfair indicated that rents have increased by 10% compared to the same period last year, with the average tenant paying £3,271 for the first month’s rent plus a five-week traditional deposit.
Wright said: “That’s a hefty sum to have to stump up when you’re about to move home. Which is why, when offered No Deposit or traditional deposit side by side, 56% of tenants choose our product.”
