Deposit Scheme
Did you know that this Council runs a deposit and deposit bond scheme?
What is a Council rent deposit?
A rent deposit is the deposit required to secure a private tenancy. A council deposit is paid direct to the landlord or letting agent. A council deposit is held to cover damages to the property’s fabric and fittings over and above reasonable wear and tear. When the tenancy ends, the deposit must be paid back to the Council. Should there be any claim, the tenant/s are liable to repay the council the amount withheld.
What is a Council deposit bond?
The Councils deposit bond is the same as the rent deposit, however, no money is paid until the end of the tenancy should there be a claim to cover damages to the property's fabric and fittings, and then this amount is paid to the landlord or letting agent up to the amount of the deposit. The tenant/s are liable to repay the Council the amount of money claimed.
Am I eligible for help under the Councils deposit or deposit bond scheme?
As a general rule, to qualify for this help, you must fulfil certain criteria:
- You must be over 16 years of age
- You must be registered on the Homefinder Somerset Scheme
- Ideally you should have been registered on the scheme for a reasonable length of time before we will consider helping you.
3. You must also have a strong local connection with the area. This would be either:
- As a result of living in West Somerset yourself for a minimum of three years out of the last five, or
- A close family member has lived in West Somerset for at least 5 years. A close family member would normally be: mother, father, brother, sister, adult children.
4. You must have a housing need.
For example:
- You are homeless and do not qualify for help under the Homelessness Legislation
- You are threatened with homelessness because your current landlord has issued you with a Notice Seeking Possession of the property.
- Your family has increased in size and you need an extra bedroom/s.
- Your current home is in very poor condition and you need to move because of this. A Housing Officer must have visited your home to confirm the poor condition of the property
We cannot offer you help with a deposit just because you ‘want’ to move.
5. We must consider the property to be affordable for you.
The level of rent for the property must reflect market rents in West Somerset. If you are claiming Housing Benefit the rent used to work out your housing benefit may be lower than the rent you are charged. The Council will consider whether you can afford this shortfall. We do not want to place households in accommodation they cannot afford which may result in rent arrears and a possible homeless situation in the future.
6. You must not have any outstanding housing arrears with this Council.
This could be as a result of:
- A claim on a previous deposit or deposit bond that you haven’t repaid yet
- Rent in advance that you haven’t repaid yet
- Accommodation previously provided for you by this Council eg B&B or temporary accommodation for which there are still arrears outstanding.
If you do owe us money for a previous deposit, deposit bond or rent in advance we may consider helping you again if you can show that you have been making regular weekly payments for a reasonable length of time.
If we agree to pay a deposit or deposit bond we will pay the equivalent of one months rent and you will be asked to sign an agreement for this. No funds will be released until we have this signed agreement from you.
Please note:
- You cannot apply for a deposit if you already live in the property
- You cannot get help with a deposit on a tenancy entered into prior to agreement of a council deposit or deposit bond.
- All decisions are made at the Councils discretion
Rent in advance
In certain circumstances we will consider helping with rent in advance. If we do help with this it will not be for the full amount and you must have exhausted all other possible avenues to get the money.
This could be through;
- Jobcentre Plus – If you fulfil the criteria you may be eligible for a Crisis loan. You should contact the Job Centre to find out about this.
- Family / friends – One person may not be able to offer the full amount you need, but you may be able to make it up from several friends or family members.
- Charitable Organisations – There are some charities that offer help with this eg SSAFA or the British Legion for ex servicemen.
You must complete an income and expenses form to show that you are in a position to repay the money to us and you must have repaid any rent in advance the Council provided previously.
The repayment period cannot exceed the length of the initial Assured Shorthold Tenancy, in most cases this is a 6 month period. So, if rent in advance of £250 is provided, it must be repaid at approximately £10 per week to repay it within the 6 month period.
Letting Agents Administration Fees
We do not pay for any administration costs, you will have to find these costs yourself. The amount you will have to pay varies from agent to agent.
Frequently Asked Questions
Does the deposit cover rent in advance?
No. The rent deposit only covers damages caused during the tenancy.
Is the rent deposit paid directly to me?
No, the payment is made direct to the landlord / letting agent.
I have been told that private landlords don’t accept rent deposits or deposit bonds from the Council. What now?
The Council is setting up rent deposits all the time, with a variety of local landlords and letting agents. If you have any problems, ask the prospective landlord to discuss it with a housing officer.
So how do I apply for a Council deposit/bond?
You will need to speak to a Housing Officer and subject to you being eligible for assistance, you must:
- Seek a suitable property by way of letting agents or local advertisements in newspapers and shops
- Once you have found a property, check the monthly Local Housing Allowance Rates (which are available from our offices, customer services and our website
- Then contact the Housing Team to apply for a rent deposit or deposit bond, you will need to provide the following information:
· The name, address and contact telephone number of your prospective landlord
· The address of the property concerned
· The deposit or bond required
- On approval, agreements will be drawn up between the Authority and yourself, and the Authority and the agent of landlord
- On receipt of signed agreements the deposit or deposit bond will be authorised (if a deposit this will then be paid to the agent or landlord).
You will be expected to reimburse the Council for any claims incurred as a result of damage to the fabric and fittings during your tenancy.