The Rent Deposit Loan Scheme

The Rent Deposit Loan Scheme is managed by the King Street Housing Society (This link will open in a new window) in partnership with South Cambridgeshire District Council. The aim of the scheme is to help people access private rented accommodation in Cambridgeshire by offering deposit guarantees to landlords on behalf of prospective tenants who cannot afford to pay deposits themselves. This deposit is repayable by the applicant in weekly/monthly instalments, the repayment amount will be agreed based on affordability and payments should start once the tenancy has begun.

How the scheme works

South Cambridgeshire District Council makes the decision to nominate you to the Society for assistance through the scheme. You may already have found a landlord willing to let a property to you or you may come to us hoping that the Society can put you in touch with a landlord.

When you are referred to the Society you will be asked questions about your circumstances and your requirements. You will also be given advice about the scheme and what you will need to do. Once you have found a landlord and reached agreement in principle you will be invited to a short interview at the Society's offices.

The Society will carry out a basic credit check following the interview.

Whether a Deposit Loan is given is entirely at the discretion of the Society. Once agreement is reached between the Society, the applicant and the Landlord, all three parties will meet at the property to carry out a full inventory and schedule of condition. When final agreement is reached the three parties will sign an agreement incorporating the inventory and the schedule of condition.

Please note the tenancy, its terms and conditions and any other agreement not involving the deposit loan are matters for the landlord and you. The Society will not act as an agent or representative of either party. The role of the Society is solely to facilitate the granting of the tenancy through the issue and settlement of the deposit loan. Any matters which arise during the course of the tenancy i.e. repairs or rent are matters between the landlord and you.

Each tenancy and deposit loan is reveiwed by the Society annually.

At the end of your tenancy a further meeting is arranged at the property to formally end the loan deposit and agree any settlement. In the event of any dispute concerning the settlement the Society will make the final decision. It will act as a fair and impartial arbitrator. Finally if the Society has to pay the landlord under the terms of the Loan Deposit the Society will seek to recover the cost from you. It is therefore, most important that you conduct your tenancy in a responsible manner.

Key considerations

  • It is the responsibility of the applicant to find a suitable property to rent. However, the Society and the Housing Advice Team can support and advise you in doing this.
  • You might find a landlord by looking in the local newspaper, asking a letting agent or by advertising in a shop window.
  • If you will receive housing benefit under the Local Housing Allowance you must let the landlord know during the initial negotiations.
  • The landlord or his agent may ask for both a deposit and a month's rent in advance. They may also ask you to pay a placement, administration or legal fee. The Society will only guarantee the deposit. The Housing Advice Team can advise you on how to apply for a loan for rent in advance from the DWP. (This link will open in a new window)
  • You will be expected to repay the loan in instalments to replace the deposit loan with a deposit of your own. Continuous access to the scheme may depend on proof of payments.
  • Please note that the Society will not act as an agent for, or as a representative of, either party. We simply facilitate the granting of the tenancy through the Deposit Loan Scheme.
  • By signing the Deposit Loan Agreement you will have a legal obligation to repay to the Society any monies paid to the landlord or agent under the terms of the guarantee.

Advice and assistance from King Street Housing Society

  • Advice on finding your own tenancy.
  • A willingness to give information to a prospective landlord or his agent on your behalf during initial negotiations.
  • If you have any questions about the Deposit Loan Scheme please contact King Street Housing Society on 01223 312294.

 

 

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