Fronted shuts after capital costs “went through the roof”

Rental lender Fronted has closed down after struggling with the rising capital cost of offering its loans to renters.

Fronted was founded in December 2019 to help renters spread the cost of deposits over several months, and later offered a ‘lifetime deposit’ which moved with renters between properties.

CEO and co-founder Jamie Campbell told Tech.eu that the ‘lifetime deposit’ model became unsustainable as Fronted’s cost of capital rose in line with interest rates.

While the lifetime deposit started off as a £40 cost to customers, that soon rose to £50 and today Campbell says “we couldn’t offer it for less than £100”.

A note on Fronted’s website written by Campbell reads: “After an incredible journey together, we’re saying farewell to Fronted. Thank you for being a part of our journey, your support made it all possible.”

Fronted raised over £20m worth of debt and equity over the last four years from investors including Fasanara Capital, Passion Capital, TrueSight Ventures and the government’s Future Fund.

The company faced difficulties early on as it launched just before the Covid pandemic struck and shut down the UK property market, forcing the business to furlough its employees and spend most of 2020 inactive.

Fronted was the brainchild of ex-Bud employee Campbell, ex-Monzo employee Simon Vans-Colina (who left the business in 2022), and ex-Apple staffer Anthony Mann.