London agency giant Kinleigh Folkard and Hayward is the latest to offer its tenant clients a no-deposit service.
It's going to use the Zero Deposit schemes across its 45 letting agency branches in the capital; this allows tenants to pay the equivalent of one week’s rent instead of the usual six weeks cash deposit, while still offering guaranteed protection worth six weeks rent for landlords.
“At KFH we have an acute understanding of the London market and the evolving landscape for both landlords and tenants. After a trial from which we received a great response, it made absolute sense for us to roll out the product across our entire network” explains Carol Pawsey, group lettings director at KFH.
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Let us be absolutely clear ......this is a fee for a Tenant.....they are not buying protection as the insurance companies have the right to come back to the Tenant and pursue their loses. I have absolutely no doubt this is a new PPI waiting to happen with unregulated Letting agents offering Financial products without the correct regulation i.e. FCA approval........just saying!!!! Good Luck KFH - I hope you have run this by your insurers!!!
ZDS are, I believe, the only FCA approved product in this space and when the letting fee ban comes in Tenants will simply need to be given a choice- a refundable deposit or a fee- if tenants and landlords alike want it, it will happen- if either party are unwilling then standard cash deposits will still apply.
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