SWAN issues deposit bond guarantees in Bath and North East Somerset

A local charitable organisation has created a programme that essentially provides lower income residents with the opportunity to gain access to private housing. No longer does lack of a rental deposit mean that a moving into a vacant rental home is an impossible dream.

Who is SWAN?

SWAN Housing is a registered charity that provides financial aid on behalf of lower income persons residing in Bath and North East Somerset. This includes the communities of Bath, the Chew Valley, Midsomer Norton, Radstock and Westfield. Keynsham is represented through Bristol. It is the approved resource for local residents who may otherwise seek aid through the local council.

The charity was originally established in 1997 and has since become a major force against homelessness across the county. Instead of the council admitting clients, all are referred to SWAN Housing where they may receive supplemental counselling and other valuable bonuses.

How does the deposit bond guarantee work?

The traditional rental assistance schemes work by providing the cash needed by a tenant to move into a private home. That cash is deposited by the landlord into a deposit protection based scheme, or alternatively in an insurance based scheme.

Rather than tying up large amounts of funding through this process, SWAN Housing can make the service available to a higher number of clients by guaranteeing the security deposits rather than fronting the cash. The benefit to landlords is that they no longer have to worry about guaranteeing any deposits received. They simply accept the bond in lieu of a cash deposit.

Landlords who need to tap into the guaranteed deposit may submit their costs to SWAN for compensation. These payments can cover arrears left by the resident or repair items as necessitated by a destructive tenant. The bond is normally written in the amount of a full month’s rent, so any qualifying expenses incurred by the landlord may be charged to the bond up to that value.

Tenants can still be held responsible for any arrears and damages from abuse. The difference though is that the landlord receives a very similar type of protection as an actual cash security deposit. The difference though is that they would receive no legal fee or court cost reimbursement through the bond.

How to qualify

There is no requirement to be on housing benefit to qualify. Each applicant must however be eligible for some level of housing benefit. Otherwise, as long as an applicant is at least aged 18 and lives somewhere in the county of Bath and North East Somerset, then they would be a potential candidate for the deposit bond guarantee scheme.

Anyone who needs help obtaining a security deposit for a rental property may contact SWAN Housing to request consideration for the assistance. A quick pre screening questionnaire may be provided over the phone, followed by an in-person appointment at one of the two locations:

• One Stop Shop, Lewis House, Manvers Street, Bath.
• Leigh House, 1 Wells Hill, Radstock.

Due to limited office hours on certain days, clients are encouraged to call prior to dropping by. SWAN Housing may be contacted at 01761 432445.

The bond scheme really does lower income residents a favour. Many of these poorer households might otherwise turn to high interest High Street loans if this alternative was not available. It is a true testament to the dedication of the Directors and Staff of Swan Housing.