Tenancy deposit replacement business Zero Deposit is launching a new product which allows tenants to unlock their cash deposit and replace it with a guarantee.
Tenants can do this at any stage of their tenancy or at renewal.
With the new five-week deposit cap coming into effect at renewal stage, the firm says it offers a simple way to maintain landlord protection while returning cash to tenants.
Zero Deposit CEO Jon Notley said: “Zero Deposit is already changing the way people rent, and deposit unlocking is the next step of our journey.
“Our ambition is to help tenants overcome the challenges of affordability by providing them with the choice to release the cash they have tied up in existing deposits.
“Landlords benefit from the extra protection our product offers over a cash deposit, with everyone protected by the safeguards that come with an FCA regulated product and the associated Financial Ombudsman Service and Financial Services Compensation Scheme.
“Agents have a natural opportunity post-tenant fee ban to introduce the Zero Deposit guarantee to tenants.
“But there are other major advantages for agents too: our product removes a compliance headache and provides them with a useful revenue stream.”