Renters won't have to pay deposits under new tenancy scheme launched this week 8 months ago

Renters won't have to pay deposits under new tenancy scheme launched this week

You might still be forking out hundreds every month - but this is a handy option should you choose it

UK renters won't have to pay deposits under a new housing and tenancy scheme launched by an insurance agency this week.

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Housing Hand is a rent guarantor service that allows students and young professionals to move into rented flats, apartments and homes across the UK without having to put down a hefty amount right from the off.

While renting, in general, has its challenges, getting together enough for a deposit alongside paying your bills, food shopping and just getting by day-by-day can be tough for lots of people.

For anyone that isn't aware, it is illegal for a landlord or housing agency to ask for more than 4-5 weeks worth of rent for a deposit and; on average, UK renters already put down approximately £1,054 deposit to secure a tenancy, according to the Office for National Statistics (ONS).

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However, with the help of Housing Hand's new scheme, those looking to move out of the family home for the first time, move away for uni or simply find a new place to live, can avoid this big one-time fee and spread out costs more manageably.

So, what's the catch? Well, first off: should you choose to sign up, you will be asked to pay a £25 joining fee and a one-off payment for joining the scheme; this one-off charge is the equivalent of 20 per cent of one month's rent, which is paid in monthly instalments stretched across the length of the tenancy.

Essentially, you tag this extra fee onto your outgoing rent each month.

Of course, there are plenty of terms and conditions and if you are considering it, we would advise fully familiarising yourself with the guarantor service in detail - but this is still a viable alternative for those looking to avoid a big deposit.

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