If you’ve heard about Lifetime Deposits, you may be wondering whether using one is the right choice for you – or whether you should just continue paying and managing your deposit in the standard way.
Lifetime Deposits have been designed explicitly for renters to make life easier, so getting one has many benefits. But if you’re wondering what they’re all about and whether you should get one, we’re here to help!
In this article, we’ll help you decide whether a Lifetime Deposit from Fronted is the right option for you by explaining what they are and how they can help renters.
What is a Lifetime Deposit?
Lifetime Deposits were introduced as part of the widespread renting reform announced in the 2021 Queen’s speech.
Put simply, they provide a solution for renters that means your deposit moves with you from one tenancy to another. In the past, renters had no choice but to make a double deposit: They paid the landlord of their new place a security deposit before collecting their previous deposit. This can leave renters £2,500 out of pocket. That ain’t right.
A Lifetime Deposit allows you to transfer your deposit from one property to another with just one click. Lifetime Deposits provide a more straightforward, more affordable way of paying your next deposit to your landlord or letting agent, removing one of the biggest barriers to renting: the cost.
Related article: Everything you need to know about Lifetime Deposits
Who Can Get a Lifetime Deposit?
Lifetime Deposits are literally for everyone.
Provided you rent from a letting agent, you can get a Lifetime Deposit from Fronted and start reaping the benefits.
To get one, you either need to be:
- Moving from one rental to another
- Moving into a rental – for the first time or after living somewhere else (not in the private rental market)
Once you’ve got one, you can manage your deposit via the Lifetime Deposit online dashboard.
What Does a Lifetime Deposit Do for Renters?
If you’re wondering what the benefits are of getting a Lifetime Deposit, here’s an overview of what they do for renters.
Moves With You
One of the best things about Lifetime Deposits is that they are portable and actually move with you.
That means whenever you move in the future – no matter how frequently – your deposit will simply move with you and go towards the deposit for your next place.
There will be no need to save up a new deposit with a new landlord or letting agent every time. Just tell us when you’re moving and where you need your deposit to go, and we’ll do the rest.
Avoids the ‘Double Deposit’ Problem
If you’ve ever moved from one tenancy to another, you’ll know about the double deposit problem. Your new landlord asks you to pay the security deposit on your new place, but usually, this is before you get your old money back.
On average, this leaves UK renters £2,500 out of pocket and waiting for their last deposit to be returned—hoping they get 100% of it back.
With a Lifetime Deposit, you can forget about that. Your deposit simply moves with you whenever you change tenancy. Even if your deposit size is larger on your next move, you just top up the difference.
Related article: Can you rent without a deposit in 2022?
Keeps Your Landlord Happy
Lifetime Deposits are designed for renters to make their lives easier. But we haven’t forgotten about landlords.
With a Lifetime Deposit, your new landlord gets the money when they want it, and your old landlord holds onto the money until you move out.
This means that with a Lifetime Deposit, you, your letting agent and your landlord are kept safe and happy.
Makes Moving More Affordable
Funding the move from one tenancy to another can be a big financial commitment that can take a big bite out of your savings.
Generally, renters that are moving have to pay for:
- A holding deposit
- A new security deposit
- Upfront rent on your new place
- Removal companies to help shift your stuff
- New furniture
- End of tenancy cleaning (even if you DIY it, you’ll still need to buy some cleaning products)
- Deductions made from your last deposit, if any
Plus, you’ll need to start paying bills on your new place (like council tax, water or energy bills) almost immediately.
All of which can make moving expensive. But if your deposit is held in a Lifetime Deposit with Fronted, it’ll be one less thing to pay for.
Related article: What bills do I have to pay when renting?
You Are Protected Against Disputes
All renters who have deposits protected with a government-approved scheme can apply for a Lifetime Deposit. This means your Lifetime Deposit is protected in a tenancy deposit protection (TDP) scheme in the same way any other rent deposit is.
Once you’re registered with Fronted, the letting agent gets the money as usual and checks it into one of the 3 deposit protection services.
Unlike some other zero deposit schemes (that can cost more in the long run), you’re protected with a Lifetime Deposit from disputes or overcharges.
Related article: What are the pros of a Lifetime Deposit for renters?
How to Decide if a Lifetime Deposit is Right for You
Getting a Lifetime Deposit is a new concept, and we at Fronted are the only ones specialising in these kinds of solutions for renters.
If you’re wondering, “Should I get a Lifetime Deposit?” and “Are they really that great?” we’ve thought about that, too.
Here are 3 questions to ask yourself to help you decide whether a Lifetime Deposit is suitable for you.
Am I Eligible?
Firstly, you need to make sure you’re eligible for a Lifetime Deposit.
Thankfully, checking your eligibility isn’t complicated. Pretty much anyone who rents can get and take advantage of a Lifetime Deposit.
The only criterion for a Fronted deposit is that you rent from a registered estate agent (including online-only agents, such as OpenRent). That’s pretty much it. Check out our Frequently Asked Questions on Lifetime Deposits for a more in-depth look at the criteria.
Can I Afford to Move?
Put simply, if you can’t afford to move rental (especially since you know you’ll need to pay a new security deposit typically before you get your old one back), a Lifetime Deposit can help make things more affordable, as it’s an interest-free loan.
Instead of taking out a high-interest credit or selling all your furniture to pay for your new deposit, a Lifetime Deposit moves with you.
90 days after you’ve settled into your new home, you’ll be able to repay the Lifetime Deposit loan. Giving you plenty of time to ensure the return of your old deposit first.
This can leave you with extra cash to pay for things like new furniture, end of tenancy cleaning, a removal company – or just treating yourself to a well-deserved takeaway on moving day!
Do I Want to Worry About My Deposit Every Time I Move?
Moving can be stressful. There’s a lot to organise – from doing your end of tenancy cleaning to scheduling removal companies.
Saving and sorting the funds to pay for your new landlord’s security deposit doesn’t have to be one of those things on the list.
With a Lifetime Deposit from Fronted, you can forget about having to pay a new deposit every time you move. Just let us know you’re moving, and we’ll do the rest.
Related article: Everything You Need to Know About End of Tenancy Cleaning.
How Fronted Can Help
Over 60% of UK renters pay a new deposit before getting their old one back. This can leave renters £2,500 out of pocket. That ain’t right.
Don’t live through the double deposit problem. With a Fronted Lifetime Deposit, your new landlord gets the money when they want it, and your old landlord holds onto the money until you move out. You sit there feeling smug.