ZPG-backed 'no deposit' scheme wins agency investors

The ZPG-backed Zero Deposit scheme, one of a number now existing putting forward an alternative to traditional deposits, has announced four agencies as new investors.

One of them is an agency which helped found OnTheMarket.

Zero Deposit has been set up by former ZPG commercial director Jon Notley, who now serves as the scheme’s chief executive; his former employer is one of a number of early investors, along with existing deposit service TDS and global insurance firm Munich Re.

Now Notley has announced four agencies and groups also investing in Zero Deposit - Connells Group, LSL Property Services, The Acorn Group and OTM founding agency Knight Frank.

In the announcement of the service’s launch this week, Knight Frank’s head of lettings Tim Hyatt says: “The robust nature of its offering is why we have given it our backing. Given the constant raft of legislative changes taking place in the lettings industry on an almost monthly basis, it is great to see such a positive, well-executed initiative coming to the market. As renting is now becoming an increasingly popular choice rather than simply a necessity, it is important that we are able to provide valuable support to help people secure a tenancy.”

Notley himself says: “Our agent partners are in addition to the industry partnerships and investments that we have already announced including Munich RE, ZPG and TDS, along with backing from a number of other financial investors including JamJar and Grenville Turner, among others. Zero Deposit is a true cross industry alliance.”

Tenants pay the equivalent of a first week’s rent for the non-refundable Zero Deposit guarantee, which gives the landlord an insurance cover which is the equivalent of the first six weeks’ rent. TDS will act as an adjudication service in the event of disputes between tenants and agents or landlords.

Letting Agent Today has reported on a range of of deposit-alternative schemes which have emerged in recent months.