It allows renters to move their deposit from one property to another
Rental platform Canopy has announced an exclusive new partnership with Fronted, which enables renters to move their deposit from one property to another during their rental journey.
The move is expected to boost Canopy’s offering across the UK and solve one of the biggest issues in a renter’s experience.
Up to this point, when moving between properties, renters have had to put down a new deposit before getting their old one back.
On average, this amounts to finding £1,228 for a typical five-week deposit when an equivalent amount of money is tied up elsewhere.
Fronted’s lifetime deposit lets renters transfer their deposit from one property to the next, while the estate agent or landlord does not need to alter their workflows in any way.
For customers to qualify, all that is needed is a deposit protected in one of the three deposit protection schemes. Once Fronted verifies the existing deposit, they pay the new deposit to the new landlord or agent on behalf of the renter. The old deposit, after deductions, is then returned to Fronted to cover the new deposit.
This offering joins the existing Fronted Deposit Loan on Canopy’s platform, which is designed to solve the issue of pulling together the funds for a renter’s first deposit.
“Traditional deposits are a significant barrier to people becoming renters in the first instance, and then a further barrier to renters moving home,” Chris Hutchinson, chief executive at Canopy, said.
“Fronted has partnered with the three deposit protection schemes to enable them to offer this solution and we are proud they have chosen Canopy to launch this to market, bringing even more benefit to renters using the Canopy platform.”
Jamie Campbell, chief executive at Fronted, believes that a lifetime deposit is about to be a big shake-up in the deposit market.
“Lifetime deposit could make existing solutions obsolete for most renters moving between properties. We strongly believe in Canopy’s vision and this partnership gives additional credibility to our model and our future plans for Fronted,” Campbell said.
