Charities and the government offer rent deposit schemes that can help people who are trying to move but are having difficulty in paying for housing costs. A number of loans, bond guarantees, and financial aid near you can help families or individuals with paying the rental deposit for a new flat. Not-for profit organisations, government housing authorities, council schemes and charities listed below can assist the needy. People facing a crisis and the homeless can get also help with paying a security deposit or rent in advance. There is financial aid provided by many groups for those who need additional support to move into a new apartment.
Many prospective tenants are struggling to come up with the funds for this. It can be very difficult to pay for all the housing costs, furniture, and other expenses for a new home or flat. This is where a rent deposit scheme, with the bonds, loans, or guarantees, can help. Find more information on getting assistance below.
Agencies Help with Damage, Rent and Security Deposits
Many councils and charities are well aware of the burden being placed on our workforce. Higher housing costs are becoming unaffordable. Without help for a deposit, many people will be forced to choose between unsafe residences and homelessness.
There are ways to get help with paying the upfront funds required by a landlord or the owner of a private accommodation. Some are better than others, and your actual options will depend on your household income, number of members in your household, ages of any children or older adults, presence of any disability and the community where you live.
- Rent Deposit Scheme: Many councils can help with your deposit if it is necessary for you to be able to move into an accommodation. They actually provide the payment to your landlord on your behalf. Each council sets the rules on qualifications. For example, funds may be limited to families with small children. At the end of your tenancy, the deposit would be returned to the council. This is a great way to benefit if you qualify since it means no money out of pocket other than the first month’s rent, which you are usually required to pay.
- Rent Deposit Guarantee: Similar to the Scheme mentioned above, the Guarantee can cover your rent deposit requirements for you. The difference is that your council would provide a bond as a guarantee for the equivalent amount of money rather than an actual cash payment. Should you default or cause damages to the flat, then the landlord may request the funds through the council.
- Budgeting Loan: The Department of Work and Pensions (DWP) can approve loans that are equivalent of up to 4 weeks of rent payments. If you are receiving Job Seeker’s Assistance, Universal Credit, Income Support, or some other government benefit then you may qualify for a budgeting loan. You can apply directly with DWP or through JobCentre Plus.
- Discretionary Housing Payment: Your council could approve a grant for you to use towards a deposit. This can often be combined with other forms of assistance as well. As an example, any type of grant issued to the individual would be above and beyond any Housing Benefit received.
- Charity Grant: Some charities provide help to tenants that cannot come up with the necessary funds to move in. Each not-profit-profit has very specific rules about qualifications as well as the types of situations that they can assist with.
- Rental Loan: If your household income is higher, it is likely that you will not qualify for one of the need-based programmes mentioned above. There are situations where a loan for paying your rent may actually be a feasible and reasonable option. If you normally earn enough to afford your housing costs but depleted your cash reserves due to a financial emergency or some other unexpected costs, then borrowing the money from a lender could give you the funds you need now with the flexibility to repay the proceeds over many months. This can keep your actual monthly payments low so that you can rebuild your emergency fund while repaying the loan.
Local Rent Deposit Schemes by County and City near you
Individuals looking to rent a new property can turn to resources in their area near them. There are a number of schemes and other forms of financial assistance available that can help with paying a deposit or other housing costs.
Leeds – Bradford and West Yorkshire County
Leicester and Leicestershire County
Liverpool and Merseyside area
Portsmouth and Southampton, including Hampshire County
Suffolk County and Ipswich
Companies or Employers
If your area is not listed, then finding help with rent deposits on your own can be a tricky endeavour. Information is often difficult to obtain, and you also must proceed with caution when predatory loan companies try to steer you into unaffordable products.
PFNI has provided a vast network of detailed profiles of various assistance schemes, charitable programmes and lending products that could provide you with the cash you need to pay the deposit in order to move into a new place. If you cannot find a housing programme that serves your locale, ask us to track down the best options for you. By taking a moment to review the assistance that you could receive, you may save yourself much cost and frustration down the road.