A new partnership was announced by Canopy and Fronted. The partnership allows renters to move their deposit from one property to another during their rental journey, boosting Canopy’s offering across the UK and solving one of the biggest issues in a renters’ experience.
Renters must now pay a new deposit when they move between properties. On average, this amounts to finding £1,228 for a typical 5-week deposit when an equivalent amount of money is tied up elsewhere.
Fronted’s lifetime deposit lets renters transfer their deposit from one property to the next, while the estate agent or landlord doesn’t need to alter their workflows in any way. Fronted was designed to work with the existing deposit system.
To qualify for the scheme, customers will need to have a deposit in one of three deposit protection programs. Fronted will verify the deposit and then pay the deposit to the agent or landlord on behalf of the tenant. Fronted then returns the old deposit to cover the new one after taking deductions.
This offering joins the existing Fronted Deposit Loan on Canopy’s platform, which is designed to solve the issue of pulling together the funds for a renter’s first deposit.
Chris Hutchinson CEO of Canopy said: “Traditional deposits are a significant barrier to people becoming renters in the first instance, and then a further barrier to renters moving home. Lifetime deposits have been an ambition for the industry for years, but a viable solution hasn’t existed to date. Fronted have partnered with the three deposit protection schemes to enable them to offer this solution and we are proud they have chosen Canopy to launch this to market, bringing even more benefit to renters using the Canopy platform.”
Jamie Campbell, CEO at Fronted, stated:: “There is about to be a big shakeup in the deposit market. “Lifetime Deposit” could make existing solutions obsolete for most renters moving between properties. We strongly believe in Canopy’s vision and this partnership gives additional credibility to our model and our future plans for Fronted.”