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Renters won’t have to pay deposits with new tenancy scheme

Top tips on gathering evidence for making a housing claim

According to the Sun News RENTERS won’t have to pay a deposit to get a new home under a new tenancy scheme that has been launched this week – but there are some fees to watch out for.

Landlords often require you to put down a deposit for a house, which can often be hundreds or thousands of pounds and difficult to save up for.

On average, renters have to put down a £1,054 deposit to secure a tenancy, according to the Office for National Statistics.

We explain a new scheme which says you can avoid paying this sum up front – but here’s what you need to know about the fees in place.

How does the scheme work?

 

It is illegal for your landlord to ask you to pay a deposit of more than five weeks’ rent.

So if you were paying £500 a month in rent, you shouldn’t be paying more than £625 for a depositBut Housing Hand, a rent guarantor, has launched a scheme where working professionals and students can move into a property without coughing up for a deposit.

You will have to pay a £25 joining fee and and a one-off payment for the scheme.

The one-off charge is equivalent of 20% of one month’s rent to Housing Hand which is paid in monthly instalments stretched across the length of the tenancy.

For example if you paid £500 rent a month for 12 months, you would need to pay £100 over one year – which works out at roughly £8.33 a month, plus the £25 fee up-front.

Read more here https://www.thesun.co.uk/money/16966126/renters-wont-pay-deposits-new-tenancy-scheme/

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