The Guild of Property Professionals has partnered with Zero Deposit, providing its members with access to the firm’s FCA regulated deposit replacement guarantee.

According to Iain McKenzie, CEO of The Guild, the partnership will help to enhance letting agents’ offering by providing landlords with a six-week security on their rental property and removing a barrier to entry for tenants.

He said: “Rather than paying a traditional security deposit, tenants can purchase a Zero Deposit Guarantee for a lower upfront cost equivalent to one week’s rent plus a £49 set up fee, and then £17.50 each year. By reducing the upfront cost for renters, Zero Deposit helps speed up the process of getting new tenants in and reducing void periods for landlords.

“With a Zero Deposit Guarantee there is also no need for agents to collect and protect money from tenants anymore, which means they do not have to be concerned about the prescribed information rules applying to cash. Once the tenant has passed referencing, the agent can introduce them to Zero Deposit, who then contact the tenant to complete the process. Once purchased, the agent, tenant and landlord will receive the guarantee documents and the tenancy will be fully protected.”

Zero Deposit Guarantees are underwritten by Great Lakes Insurance SE, part of Munich Re. As the product is regulated by the FCA, landlords have recourse to the Financial Ombudsman Service and protection under Financial Services Compensation Scheme.

McKenzie added: “Offering a no-deposit option will boost demand by widening the potential selection of tenants who can afford the rental but may not have a deposit in hand. Of those polled, 96% of tenants said that they would select a Zero Deposit agent above the rest, which also means that it will give agents a competitive edge over their counterparts who are not offering landlords and tenants this alternative.”