Rental platform, Canopy, has announces an exclusive new partnership with Fronted.
The partnership allows renters to move their deposit from one property to another during their rental journey.
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 doesn’t need to alter their workflows in any way. Fronted was built to fit into the current system of deposits.
For customers to qualify, all they will need is a deposit protected in one of the three deposit protection schemes. Once Fronted verify 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.
Chris Hutchinson, CEO of Canopy, said: “Traditional deposits are a significant barrier to people becoming renters in the first instance, and then a further barrier to renters moving home. Lifetime deposits have been an ambition for the industry for years, but a viable solution hasn’t existed to date.
“Fronted have 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, CEO of Fronted, added: “There 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.”