Zero Deposit launched at the end of February 2018. The Zero Deposit Guarantee is an insurance backed financial guarantee that is purchased by the tenant, costing 1 week’s rent, and which provides the landlord with 6 weeks of cover in place of the full deposit. Every guarantee is underwritten by Great Lakes Insurance SE and covers all of the obligations that a traditional deposit would, like unpaid rent, damage to the property etc. In the event that the tenant and landlord do not agree on any outstanding claim at the end of the tenancy, the dispute is adjudicated by TDS (The Dispute Service), one of the three government approved Deposit Protection Schemes. Zero Deposit is backed by ZPG plc, The Dispute Service and a number of high profile UK letting agents and financial investors.
KM Capital view this as a modern alternative, where tenants have a choice to take out insurance rather than tying up funds for tenancy deposits.