Chichester advance rent loan and deposit bond scheme

Chichester citizens, including both tenants and landlords receive tremendous support in establishing new tenancies when upfront cash deposits are unavailable. A rent deposit bond is available to lower income tenants who apply through Chichester District Council’s Homefinder scheme.

The primary purpose of the bond is to help residents who lack the required funds to pay both rent in advance and deposit. Some tenants need help with both. To meet this demand the Council will provide the opportunity to establish new tenancies for residents who might otherwise face homelessness. The barriers to entry are just too high for someone who may already be overpaying at a bed and breakfast or other temporary accommodation.

The premise is similar to other council schemes. Applicants may request additional time to save for a rent deposit. Council will provide the bond which guarantees the landlord that any property damages will be reimbursed through government funds even if the tenant lacks the ability to pay.

Process for tenants

People who have lived in Chichester and have a local connection may apply for the bond scheme. There are two components. The deposit bond will guarantee damage protection up to six or eight weeks depending on the choice of the landlord.

If an applicant also lacks the money to pay rent in advance, Council can provide a loan to cover the amount. Loan proceeds are paid directly to the landlord at the start of the tenancy.

Tenants are expected to make regular small deposits to save an amount equal to the deposit bond. This balance will eventually replace the bond and those funds will be returned at the end of the tenancy once any damage costs have been deducted. The savings allow for tenants to move to a different home if they choose and already have the amount necessary to put the deposit down.

Loan payments must also be made to reimburse Council for the rent in advance paid on behalf of the tenant. The repayment term allows for regular instalments to fit within a tight budget.

Any Chichester citizen who has struggled to save money for deposit or rent in advance but who could normally afford the monthly rent is a likely candidate for the scheme. Properties can be found through the Homefinder Scheme listings. Residents may call 01243 534734 to request a meeting with the private sector housing team.

Benefits for landlords

What makes the Chichester scheme unique is the fact that bonds are issued for higher amounts than is commonly done by other districts. The standard bond is written in the amount of what six weeks of rent would be. This is up from the four weeks or one month found in other programmes. This service is provided to landlords and tenants at no charge through the Bronze service.

Landlords do have the option to subscribe to an even higher bond limit than the six weeks. By skipping over the Bronze and Silver levels, landlords may select the Gold service to extend the bond limit to eight weeks of coverage. Council provides these options for landlords:

• The Bronze service is standard and carries no costs. A six week bond guarantee is included.
• Landlords that choose to upgrade to the Silver level pay £150 from the first month’s rent. This includes a six week bond. The service includes accompanied viewings, reference checks for applicants and preparation of the initial tenancy agreement. Grants to improve derelict properties are also available at this level. Matched funding can be provided up to £4,000 to improve a property to accreditation standard. If the property is empty, the landlord may apply for grants of up to £10,000 to restore it to acceptable condition. The landlord has to match the grant with their own funding.
• The Gold service extends the bond guarantee to a full eight weeks. The cost to landlords is £150 which is deducted from the first months rent, plus 8% of the ongoing rental income. All of the benefits from the Silver level carry over, plus full property management responsibilities.

Most housing associations already participate in the scheme. Southdown operates a programme called Access PRS which is backed by the Council’s bond and rent in advance scheme. Landlords who desire to participate may call the same private sector housing team at 01243 534734.