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/