Property developer to allow innovative cryptocurrency rent payments
Rental payments are normally made by tenants by the medium of direct debit, but one property developer is taking a new innovative approach to payments, and will allow its residents to pay by bitcoin for the first time, starting this autumn.
London-based developer The Collective said that as a result of demand from tenants, it will start accepting deposits for apartments in the cryptocurrency from this month, while it will also begin to allow people to start paying their rent in bitcoin from later this year.
The developer said that more people around the world are now using bitcoin than ever before, adding that this has created demand for payments of things like rent in the virtual currency. It's the first time that any property company in the UK will allow bitcoin, which is not controlled by any central bank, to be used for rent payments.
Bitcoin has recently seen a surge in its value, hitting £3,627 earlier in September, growing by 350 per cent since the start of 2017 alone.
“The rise and adoption of cryptocurrency globally, particularly bitcoin, is a fascinating development in how people store value and transact for goods and services worldwide,” said The Collective’s chief executive and founder, Reza Merchant.
“With many savers and investors now choosing and becoming more comfortable with cryptocurrency, people will expect to be able to use it to pay for life’s essentials, including housing deposits and rent.”
However, despite the innovative decision from the company, the Association of Residential Letting Agents (ARLA) said it has some concerns around the move.
It said that while bitcoin is becoming a more popular currency, its adoption remains in its infancy, and there is still a long way to go before it can be considered as a widespread option for payments for things like rent.