Tenants who are unable to afford an upfront cash deposit can now apply to the Council’s Deposit Assistance Scheme to help secure a new home in the private rental sector.
What is the Deposit Assistance Scheme?
The Deposit Assistance Scheme allows us to provide a non-cash deposit (known as a bond guarantee) to a landlord or agent in place of the usual cash deposit.
This can be claimed by the landlord if there are any damages or losses to the property when a tenant moves out, or rental arrears remaining
A tailored advice service is also available to applicants, to include affordability checks and help and support to enable prospective tenants to set up and maintain their new tenancy.
Who can apply?
You may be eligible for the Deposit Assistance Scheme if you meet the 3 criteria below:
- You are on a low income, or in receipt of certain benefits, or are otherwise unable to afford/find the funds upfront for a deposit,
- You have a local connection, whereby you either live or work in the area, have family in the area, provide care for someone who lives in the area or receive care from someone who lives in the area
- Either
(A) You are homeless or threatened with homelessness and this cannot be prevented e.g. your landlord has served you with an eviction notice, OR
(B) It is necessary for you to move home due to your current circumstances.
Additionally, your application may be refused or disqualified if:
- You have deliberately caused your own (threatened) homelessness,
- You sign for a property before a decision is made on your application,
- You have previously received Deposit Assistance from the Council which you have not repaid or has been significantly paid out on,
- Your prospective landlord is your relative.
Will you help me to find a property?
No, you will need to find your own property, with a landlord or agent that is willing to accept the scheme. We can however give advice regarding affordability and where you should focus your search, and are able to talk through the scheme with the landlord if they have any queries.
What happens once I find a property?
We will carry out some checks with you to ensure that the property is affordable and suitable to your needs.
In most cases, a visit to the property will be carried out to make sure it is safe and free of repairs, and we will make a detailed record (or inventory) to show the condition of all fixtures and fittings before the tenancy starts. This helps to protect both you and the landlord.
The inventory and Deposit Assistance Scheme agreement documents are then signed by all parties - the Council, tenant and landlord.
How much can the scheme cover?
The non-cash deposit may cover up to the value of 5 weeks rent, up to a maximum of £950.
Can this be paid in cash to the landlord?
No, the scheme does not cover cash deposits. We will enter into a guarantee agreement with the landlord and tenant, setting out our obligations to cover the cost of any property damage, loss and/or rental arrears identified at the end of the tenancy (up to the bond value). Landlords will need to clearly evidence any property damage and/or rental arrears, with prompt payments made upon receipt of claims.
What will the landlord need to do?
There are no additional obligations placed on landlords through the scheme, although we will make checks to ensure they are fulfilling their usual duties. Landlords will need to:
- Provide a property suitable for the needs of the tenant
- Provide a written tenancy agreement (and share a copy with us)
- Provide copies of the current gas and electric safety certificates, the Energy Performance Certificate and the Government’s ‘How to rent’ guide to the tenant
- Ensure the property is safe and of a good standard throughout the tenancy
- Get in touch with the Council if they have any concerns, including if significant rental arrears start to build up
- Let us know promptly when the tenancy ends, if making a claim against the Deposit Assistance Scheme
- Sign the relevant paperwork for the scheme and provide access to the property so we can complete our checks.
What happens if I damage the property and the landlord makes a claim?
You should look after your home throughout the tenancy. If you do cause damage, you are responsible for putting it right or covering the cost of the repair. However, if damage is left at the end of the tenancy and the landlord needs to make a claim, we will make the necessary payment to the landlord and look to recover the costs from you.
What happens if I am struggling to pay the rent?
You must make us aware if your circumstances change during the tenancy (e.g. if you experience a loss of employment or reduced hours/income) and you are unable to make the rent due.
We can offer assistance in relation to applying for financial support with housing costs (such as the Housing Element of Universal Credit), and signpost to wider benefit, financial wellbeing and money management support.
You also need to promptly make your landlord aware, and look to agree an alternative (interim) payment plan to allow you to access additional financial support.
We would strongly encourage you to communicate openly and honestly with your landlord in relation to your financial situation, and to keep your landlord updated if and when your circumstances change.
How can I apply?
To apply for the Deposit Assistance Scheme, you will need to:
How can the landlord make a claim against the bond?
If you are a landlord or letting agent and you wish to make a claim following the end of a tenancy, please firstly notify us of the intended claim at das@wigan.gov.uk.
You may then complete the online form to submit your claim.
Please ensure that you have the evidence to support your claim to-hand when you complete the webform, as you will be asked to upload it as part of the form. This should include a copy of your check-out report, and evidence of costings. You can also provide further supporting evidence after submitting the claim if required by emailing this to das@wigan.gov.uk and detailing which claim it pertains to.