What is the rent deposit guarantee scheme?
A deposit is the cash amount you pay to your
landlord when you sign your tenancy agreement. The amount you pay is
normally equal to a months rent. For example, if the rent is £400
per month, the deposit will normally be £400.
If you are not able to pay the deposit
yourself, you can apply to the rent deposit scheme. If you are
accepted onto the scheme, the Council will sign an agreement with
the landlord to cover the cost of the deposit. No cash is given to
the landlord or tenant. The landlord will claim the money from the
Council at the end of the tenancy if there are grounds to do
so.
If the Council has to pay
the deposit to the landlord, you must pay this amount back to the
Council at an agreed weekly or monthly amount and you will not be
able to apply to the scheme again until the debt is cleared.
You must not sign the
tenancy agreement or move into the property until you and your
landlord have been told that you can by the officer running the
scheme.
How long is the deposit covered for?
The Council will agree to cover the deposit
for a maximum of 12 months. If the tenancy is only for 6 months,
the agreement can be renewed for a further 6 months if the tenancy
is renewed. After the 12 months, you must pay any future
deposits.
The idea of the scheme is
that the tenant uses the 12 months to save enough money to pay for
future deposits.
Who can apply?
The scheme is open to anyone aged 16 or above
who is claiming income benefits or is on a low wage (single people
aged 16-25 will only be entitled to the standard room rate for a
bedroom in shared accommodation).
Plus:
- You must have lived in the West Lancashire area for at least
the last 12 months
- The property you want to rent must be in West Lancashire
- You must not have any other way of paying the deposit (i.e. no
savings)
Who can’t apply?
The scheme is not available to the following
people:
- Current council or housing association tenants
- People who have voluntarily left a council or housing
association tenancy within the last 12 months
- People from outside the UK who are not eligible for local
authority housing assistance
- People under the age of 16
People who have been evicted from a council or
housing association tenancy or who have been assessed as being
intentionally homeless, will not be automatically excluded
from the scheme. Each case is assessed individually.
Where the eviction was for
serious anti-social behaviour, the granting of a deposit guarantee
would be subject to any support arrangements that were in place, or
going to be put in place, to address the behaviour.
Where the eviction was for
rent arrears, the current financial capability of the applicant
would be taken into account to ensure the current tenancy would be
sustainable. Referrals to support agencies would also be carried
out.
I think I’m eligible, when do I apply for the scheme?
You can apply for the scheme
once you have found a property that you would like to rent. Follow
these steps to help you.
Step 1: Find out how much Local
Housing Allowance you are entitled to
The maximum rent that a person can claim is
now set based on the area the property is in and the number of
bedrooms they need. The allowances are available to view online and
in council offices.
You must find out what the
maximum amount available is for a suitable property in your chosen
area. The amount you will actually be paid will still be based on
your income.
Step 2: Find a
property
Once you know how much Local Housing Allowance
you are entitled to, you can look for properties in that price
range.
There are different ways
of finding a home to rent privately. Properties can be advertised
through local estate agents, on the internet or in the local
papers.
Some landlords rent their
properties directly to you while others will use an agent
- know as a 'letting agent' - to do this for them.
Step 3: Apply to the
scheme
Once you have found a property you can fill in
the Rent Deposit Scheme application
form (68KB)and send it to the Homelessness Advice &
Prevention Team.
If the rent is more than
the amount of Local Housing Allowance that you are entitled to, you
will have to pay the difference. We will look at how much this is
and whether you can afford to pay it before we will agree to pay
the deposit.
It is important that you
make sure that you can pay the difference before you move into the
property because your landlord can evict you if you do not pay.
Step 4: The inspection
If you are accepted onto the scheme we will
visit the property you want to rent with an officer from our
Private Sector Housing Team. They will check the property is safe
for you to rent and that the landlord has certificates to show the
gas and electric are safe.
An inventory will also be
carried out. An inventory is a list of the contents and condition
of the property. The officer will write down the condition of every
room in the house so that any damage can be pointed out to the
landlord before you move in. If the property has some furniture in
it, a list of the furniture and its condition will also be
taken.
Once you have moved into
the property, it is important that you report any damage or worn
out items to your landlord immediately.
Step 5: Moving in
If the property passes its
inspection we will tell you that you can sign the tenancy agreement
and move into the property.
The landlord and the Council will sign a contract, which
guarantees that if you don’t keep to the terms of your tenancy
agreement, we will pay the deposit. No money is given to you or
your landlord.
Related information