Deposit replacement scheme Canopy has appointed former Hamptons head of lettings Jonathan Pitt as its chief commercial officer.

Pitt will be responsible for consolidating existing relationships and providing support to lettings agents as they adapt to the tenant fee ban.

He said: “It’s an exciting time for UK proptech and I’m pleased to be joining Canopy to help shape the future of the UK lettings market. I look forward to contributing to the impressive work that chief executive Tahir Farooqui, and the Canopy team have achieved so far.”

Rob Wirszycz, chairman of Canopy, added: “Hiring Jon is a statement of intent for Canopy as unlike others working within the rental ecosystem who benefit from only one stakeholder, Canopy takes a holistic view, working to provide advantage for all relevant actors – agents, landlords, managers, and of course, renters.”

Canopy had already been trialling its deposit replacement scheme through Hamptons agencies.

Instead of paying an upfront deposit, tenants have the option of making a one-off payment for an insurance policy from Hiscox that covers the landlord for up to £30,000 in the same way a deposit would.

Each tenant is given a Rent Passport that contains personal information such as where they were born, their job, credit report and any sanctions, as well as a negative media check, to determine how much they should pay for the insurance.

The cost of an insurance policy is not recoverable, as a cash deposit would be, but it can be reduced to as low as 5% based on good renter behaviour.

It comes as the Government yesterday committed to exploring the merits of deposit alternatives and reporting back within six months after calls from MPs on the Housing, Communities and Local Government Select Committee as part of scrutiny of the draft Tenant Fees Bill.