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a year ago - 5 minute read
Since the average UK rent deposit sits at £1,200 (sometimes more, depending on where you live!), moving from one rental to another can be tricky.
You usually have to pay your new deposit before you get your old one back, which can leave you out of pocket for a while. Or it can put you off moving altogether!
The good news for renters is that you can get help with rent deposits in different ways. We may be biased (since we provide them!), but one excellent way to get help with rent deposits is to use a Lifetime Deposit.
How do these deposits help moving renters? Keep reading to find out!
Lifetime deposits are a new way of paying your rent deposit when you’re already renting.
Typically, you have to pay a “double deposit” when moving rental, which means you have to pay your new landlord a deposit before your current landlord gives your old one back.
But, when you use a Lifetime Deposit, your old deposit is used to pay for your new one instead – no stress and no savings needed.
This has many benefits for renters, as it can mean one less thing to pay for upfront when you’re moving.
Learn more about how Lifetime Deposits work.
Lifetime deposits can help with a rent deposit and make moving easier for many reasons. They can remove some financial barriers to moving, like having to pay your new landlord when your old deposit is tied up with an existing landlord.
Here’s how a Lifetime Deposit can help with rent deposits.
If you’re already renting, a Lifetime Deposit will use your old deposit with your current landlord and transfer this to your new property. This is done via an interest-free loan.
Because your old deposit is used, you won’t have to save to pay for your new deposit before moving.
Moving rental often requires payment upfront for everything. Even if your new deposit is more than your existing amount, you’ll have more time to save when you use a Lifetime Deposit.
This is because we’ll pay the difference, and you can settle it later, after you’ve moved out, with a top-up. We do this to give you longer to save and (hopefully!) reduce the financial pressure of moving somewhere more expensive.
No one said moving rental is easy. There’s often competition with nice properties, so viewing a property and making your rental application stand out are just the first steps in a potentially long process.
Sadly, in the UK, moving rental can be expensive. You’ll normally have to pay various things upfront, including:
Because Lifetime Deposits transfer your old deposit to your new property, it gives you one less thing to pay for upfront, offering more peace of mind and a potentially easier move.
An average UK rent deposit is somewhere in the region of £1,200, which can be a large sum to pay upfront.
On top of the deposit, you often need to pay your landlord the first few months of rent upfront, plus a holding deposit, and pay for any other moving expenses, like the costs of a moving van.
Depending on your situation, you can get help with a rent deposit that negates the need to pay your landlord or letting agent the money upfront.
The most common ways to get help with rent deposits are to:
There are three main ways to pay for a rent deposit:
Deciding which option is right for you depends on your circumstance.
Here’s more information on the different ways to pay for your rent deposit.
The most common way to pay your rent deposit in the UK is by making an upfront payment to your landlord or letting agent. You’ll normally have to pay this when signing your lease.
When you pay the money, it gets transferred into a deposit protection scheme by your letting agent within 30 days.
Even though this is the most common way to pay your rent deposit in the UK, it isn’t always the most beneficial for tenants, especially if you’re moving from one rental to another. This is because you have to use your savings to pay a “double deposit”.
You can sometimes get government help to pay your rent deposit upfront, which you can learn more about at Shelter.
We do this by transferring your old deposit to your new landlord. This means you can use your savings for other things, like paying rent upfront on your new place or buying new furniture.
Learn more about how Lifetime Deposits work.
Zero-deposit schemes can also spread the costs of paying your letting agent their security money, but they can lead to you paying more in the long run due to interest and other factors.
We’re not financial experts in loans or zero-deposit schemes, so be sure to seek help where needed to understand the consequences of using a zero-deposit scheme to pay for your rent deposit.
Read Shelter’s advice on zero-deposit schemes and loans to learn more.
Yes, you can sometimes rent without a deposit, but whether it’s beneficial to you depends on the circumstance.
Zero-deposit schemes and/or properties can reduce the need to pay an upfront deposit. However, you’ll still need to pay money to protect the landlord in the event you damage their property.
Using these schemes can often lead to you paying more money over the course of your tenancy than if you paid it upfront.
Learn more about renting without a deposit.
Get help with your rent deposit the easy way via a Lifetime Deposit – and forget about saving up before you move.
For the first time ever, if you already have a deposit protected in a deposit scheme, you can transfer it to your next property.
A Lifetime Deposit will help you keep hold of £1,200 on average, which we think is pretty neat.
We are on a mission to help more people move, so if you are moving soon, don’t forget your Lifetime Deposit!
If you're a renter, we've got your back. This corner of the Fronted site is loaded with everything from moving tips, Lifetime Deposits, and anything you need to make renting, or moving, a breeze.
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