A Zero Deposit Guarantee is an alternative to a traditional tenancy deposit. It provides the same level of financial protection and security to landlords, whilst reducing the upfront costs to tenants. With Zero Deposit, tenants will still complete their referencing checks as per the usual process and will remain wholly responsible for any financial loss or damage covered by their Assured Shorthold Tenancy agreement.
If a landlord offers the choice of a Zero Deposit, tenants can choose between Zero Deposit and the traditional cash deposit. Zero Deposit still offers cover up to the value of six weeks' rent whereas under the Tenant Fee Act 2019 most tenant deposits will be restricted to the value of five weeks' rent only.
Why choose Zero Deposit?
- Speeds everything up: Zero Deposit is helping to solve financial challenges for tenants who, on top of rent and other costs of moving need to find the value of at least five weeks' rent for a security deposit. By helping to tackle these affordability issues, Zero Deposit can help tenants move into properties faster and reduce large upfront costs, in-turn helping reduce void periods for landlords and offer greater protection to landlords.
- Provides security and protection: Zero Deposit provides cover equivalent to a six week tenancy deposit as opposed to the five week limit for cash deposits for most assured shorthold tenancies. It is regulated by the Financial Conduct Authority, so tenants and landlords must be treated fairly and reasonably.
- Less hassle and paperwork: As this Guarantee is not a traditional deposit, it does not need to be registered with the deposit protection schemes, making the process less time consuming for both tenants and landlords.
For further information on Zero Deposit, read the full guides below or alternatively, contact your local branch to discuss.
Zero Deposit is a trading name of Global Property Ventures Limited (10328435), which is registered at Business and Technology Centre, Bessemer Drive, Stevenage, SG1 2DX. Global Property Ventures is an insurance intermediary and is authorised and regulated by the Financial Conduct Authority. You can find details of this at register.fca.org.uk, by searching for the company name or reference number, which is 797026. The Zero Deposit Guarantee is provided by Great Lakes Insurance SE, UK branch office. Great Lakes Insurance SE is a German insurance company with its headquarters at Königinstraße 107, 80802 Munich. It is registered with the commercial register of the local court of Munich under number: HRB 230378. The UK Branch office is at Plantation Place, 30 Fenchurch Street, London, EC3M 3AJ. Great Lakes Insurance SE UK Branch is authorised by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and subject to limited regulation by the Financial Conduct Authority and the Prudential Regulation Authority.