What is a zero deposit scheme?

A zero deposit scheme is a paid alternative to a traditional cash deposit. Instead of paying, say, 5 weeks' rent upfront, you pay a smaller non-refundable fee (typically around one week's rent) to a deposit replacement provider, who effectively insures the landlord.

The trade-off: it reduces upfront moving costs, but unlike a traditional deposit, you don't get anything back at the end of the tenancy - the fee is gone either way.

What to check: zero deposit schemes aren't automatically covered by the same government-backed protection as traditional deposits, so ask exactly what happens if there's a dispute about damages.