A new entrant has emerged in the deposit replacement scheme market.

Lettings agency software provider Goodlord has launched a new deposit alternative that will be available to users of its platform.

The proptech firm is already regulated as an appointed representative of Paymentshield to provide rent protection and contents insurance, and has now added deposit protection to its range.

Goodlord said tenants could pay 25% of a month’s rent, while landlords receive eight weeks of protection, which is longer than the impending five-week deposit cap.

It is unclear if agents will be paid a referral fee, as some providers offer, but a spokesman said firms would need to discuss this with a member of the Goodlord team.

Oli Sherlock, head of insurance for Goodlord, said: “We’ve listened to the concerns our customers had around other deposit replacement schemes in the market and, as a result, have built an insurance-backed deposit replacement scheme that offers our customers more security, with up to eight weeks’ protection for landlords.

“Goodlord’s Deposit Replacement Insurance is also white labelled, which means our letting agencies can ensure complete alignment with their own brands.”

William Reeve, chief executive of Goodlord, added: “Offering deposit replacement insurance is just one of the ways we’re working to provide the best renting experience in the world, by helping letting agencies to create new revenue streams while giving renters a better way to get into their new home.

“Deposit replacement could cost renters as little as 25% of a month’s rent.

“After a successful testing period with a select group of our customers, we’re excited to now offer deposit replacement insurance to all the agencies we work with.

“This will help to put agents in a good financial position ahead of June’s tenant fee ban, enabling them to offer landlords significantly more protection than a traditional tenancy deposit, and making moving home easier for their tenants.

“The Goodlord platform ensures the process is completely transparent and seamless for all parties.”