Rental deposit scheme
Are you homeless or threatened with homelessness and have found a place to rent but can't afford the rent in advance and/or the deposit?
Maybe we can help.
Do you:
- Live in Huntingdonshire District
- Have a low income?
- Have no unaddressed debts with the Council
- Have not been declared bankrupt
If you can answer yes to all these questions and are homeless or threatened with homelessness, please continue down the page to find out how the scheme works and how to make an application. If you are not sure whether you qualify or if you have yet to find somewhere to rent, telephone: 01480 388388.
About the loan scheme
Good quality privately-rented accommodation is available throughout Huntingdonshire district. We want to help more low-income individuals and families who may otherwise be or become homeless to take up private sector tenancies, but landlords will normally want to be paid one month’s rent in advance plus a deposit against breakage and damage, and we know that this kind of money is often difficult to find. This is why we have introduced the loan scheme.
If you qualify under the scheme, you may borrow an amount to cover the rent in advance and/or the rent deposit. The loan is made interest free and can be paid back over 12 months. As from 6th April 2007 new legislation came into force. Deposits paid to landlords and agents taken after this date have to be held in either a custodial or insurance based deposit scheme. Alternatively, your landlord may agree to take a BOND from the Council which guarantees a payment up to the amount of a deposit, should a claim be necessary at the end of the tenancy. You remain liable for this amount and would be invoiced for any payment that needs to be made to the landlord or agent. The advantage to you of the bond is that it keeps down the amount you need to borrow and repay each month.
We want you to be able to take on a tenancy you can afford to maintain, and we want you to be able to pay the loan back without stretching your budget too far. We also want the people we help with a loan to be seen by landlords as good tenants. This way, landlords will be encouraged to make more property available to low income households. For these reasons not all people who want a loan will qualify for one. These are our rules:
- The scheme is open to Huntingdonshire residents on a low income who are homeless or threatened with homelessness
- You should have found accommodation before you apply for a loan. (If you have not yet found a place you are advised to speak first to a Housing Advice Officer). A few words of advice before you go looking could save you a lot of time later!
- You should live in the accommodation as your only home. It must be suitable for your needs, that is, it should be of reasonable condition and quality and not have too many or too few rooms. The rent should be reasonable. (We will want to check on this.) If you need to claim Housing Benefit to help pay your rent, the size and cost of the property must also be in line with the Local Housing Allowance to ensure it is affordable. For further details, please refer to the "Housing Benefit" and "Local Housing Allowance" links on the right hand side of this page.
- Please note the income check carried out as part of the loan assessment is only a guide and it does not guarantee that all or any of your rent will be met from housing benefit. This can only be decided when a valid housing benefit claim has been determined after you have taken up the tenancy.)
- If you are given a loan, we will need to agree you can afford the loan repayments.
- The loan budget is limited and may need to be closed from time to time if funds run out. For this reason if you qualify this is not necessarily a guarantee that a loan will be made, but we will always let you know the position at the earliest stage.
You can download an application form and a leaflet about the scheme from the link on the right.