Orkney Islands interest-free rent deposit loans

Residents with a local connection in the Orkney Islands may get approval to have their rent deposit paid on their behalf. A loan can be used to pay housing expenses. Using those funds, Orkney Islands Council operates a rent deposit scheme that helps citizens rent a new home even when they lack the cash to pay their own deposit.

People who are likely to be homeless if unaided within the next two months are likely candidates for a special scheme. This is not a grant. It is similar to a loan that the person must repay, though there are no interest payments. There is no charge for this service.

Loans paid to landlords in Orkney Islands

The Council will provide the funds needed for a rent deposit and will make this payment directly to the landlord. The tenant can then repay the funds that were lent through regular installments. These payments are made to the Council according to a schedule outlined in the Deposit Agreement.

This is one of the most successful answers to homelessness as it fosters independence through a pattern of saving. People who participate learn to put money away in small instalments which can then serve as a cash deposit. It can be a great benefit to those who cannot save the money on their own due to uncertain living situations. Most people find that their living costs actually decrease once they are in a permanent rental home. It enables them to begin saving a small amount to put towards the money their landlord received from the Council.

Applications for financial help

Not every applicant will qualify for the scheme. Since the funds are limited, requests will only be approved if the Council feels that the person is likely to be homeless. Residents who have experienced a recent hardship are more likely to be approved. An applicant must be receiving benefit payments in order to get approval for rental assistance.

Another stipulation is that the Council must be confident in the person’s ability to afford to make ongoing rent payments. This limitation ensures that only those who are likely to succeed are the recipients of the aid. The homelessness officer reviews each case to determine the ability of the tenant to make all required payments. If they cannot be trusted to abide by the tenancy agreement, then the request for funding may be denied.

Any person who previously accessed the scheme and did not repay damage charges would be prevented from participating again under most circumstances. The Council will work with any person who owes money from a previous bond. They can set up a series of instalments until the full amount of the borrowed funds are repaid.

If not qualified by the Orkney Islands for the loan, there are other welfare grants as well as financial help programmes in Scotland. They main one is Scotland Community care Grants. it can help pay for some housing needs, including furniture or part of a deposit. More on Welfare Grants in Scotland.

Loan amounts paid out for rent deposits

The limit of this arrangement is the amount of the rent deposit, which should be no greater than a single month’s rent. This can be repaid over many months while the person is living in the new home. Following the term of the tenancy, the deposit can be returned to the tenant instead of the Council. This allows it to be used towards the next tenancy.

Any private rental property can be eligible for the scheme. It should be safe, clean and a proper match for the family size. An inspection from Environmental Health may be ordered on multiple occupation homes.

Landlords can deduct any approved charges from the deposit balance as long as the charges are itemised and receipts are provided. Only fees that originate from items in the signed inventory are allowed. This inventory is provided to the Council and the tenant prior to the tenancy.

Due to the isolation of the islands, the Council does allow some flexibility in how it determines whether an applicant has established a local connection. Anyone who has lived here at least half the year or three out of the last five years will meet the definition as long as they have family that lives locally or have been employed here.

To apply for assistance, residents will need to meet with an advisor at the Council offices in Kirkwall. An appointment may be scheduled by calling on 01856 873535. After an appointment has concluded, most decisions are made within two working days.

Those who are denied may appeal the decision. Approvals can allow the person to put a cash deposit down and repay the amount over many months without paying any interest charges. The Orkney Islands Council rent deposit scheme is provided as a public service to prevent homelessness.