Humberts is to offer a deposit replacement scheme after forging a partnership with tech start-up Canopy.
Humberts will use Canopy’s DepositFree renting offer, which allows tenants to pay into an insurance scheme, rather than stumping up for a deposit.
The deal also allows Humberts to use Canopy’s RentPassport system.
Under the scheme, each renter is given a RentPassport that looks at personal information such as where they were born, their job, credit report, 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% of the size of a standard cash deposit, based on good renter behaviour.
Canopy already has partnerships in place with several other businesses, including GetLiving, Hamptons International, Tipi (Quintain) and Atlas Residential.
Suzanne Diamond, head of lettings at Humberts, said: “We are constantly looking to evolve our offering and provide access to the latest technology and procedures at a time when the lettings industry is experiencing a rapid period of change.
“Our partnership with Canopy is an excellent example of this: a pioneering service designed to give more flexibility and choice to our tenants and landlords.”
The news came as Humberts revealed that it would open six new regional hubs for its land and new homes division.
Humberts’ Cirencester office will cover the Cotswolds, Chippenham has been assigned the west of England, Sherborne to the south west, Sevenoaks to the south east, Southampton to the south and the Mayfair office will look after London.
Humbers has also made new appointments to bolster the department, headed by Adam Phelps.
Paul Grocott, who previously ran his own estate agency business, has joined as a land consultant in Southampton.
Gerald Harford, based in Chippenham, also moves into the land and new homes team.
Comments (7)
Just interested to know … is the scheme optional for the tenant? If the tenant is not given the option but is ‘required’ to participate in the no-deposit scheme, and the premium is not recoverable, isn’t this a ‘tenant fee’ and covered by the impending ban?
Yes, its a choice for the renter. At Hamptons, they either pay a security deposit or, if they qualify, the insurance premium. Should drive tenants who want to make the savings.
Hang on. Is that potential £50 paid each month? So, a Tenant can pay £1,000 as a deposit, which at the end of the tenancy is returned providing the property is in good order, or they can pay £50 a month which they DON’T get back, and after 20 months is more than they would have paid as a deposit? Am I understanding this correctly?
And how does the Landlord/Agent claim for this money in the event of rent arrears or damage? Under the current schemes the Tenants can contest any deductions and it will be arbitrated. I’ve never come across an insurer that is happy to give money out, so the vast majority of disputes would surely end up in the Tenants favour, and the Landlord would be out of pocket.
What the heck is wrong with the current scheme? Admittedly, the RentPassport is a FANATASIC and would stop the less-than-honest tenants being able to get their mate’s sister to call up and pretend to be the private landlord and give a glowing reference.
Much better that that actually – premium is paid once to cover the duration of the tenancy.
In the event of a claim at the end of the process, Canopy’s insurer Hiscox pay out on recommendation by the managing agent. In instance of a dispute, arbitration process is handled independently & then resultant decision paid out within 10 days.
The main problem they’re trying to solve, unless I’m misinformed, is greatly improving the affordability of moving for tenants. With a previous deposit tied up, plus agent fees, plus first month’s rent, many tenants are being forced to scrape funds together by any means possible. Hopefully their Rent Passport gives a detailed assessment of affordability & behaviours.
Ultimately though, it’s about choice – up until deposit replacement schemes, tenants did not have this choice. As long as the landlord & agent is properly protected, I see no reason why the current scheme can’t be improved & more tenant-friendly!
Well, that’s certainly better than what I thought!
5% of what?
5% of the traditional cash deposit amount, I believe. I.e £1000 = £50 premium