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Deposit Scheme
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  • In Practice
  • Deposit Scheme

    AWARD: £10,000

     

    ORGANISATION: Dens Ltd

     

    AIM: 

     

    To assist service users to access the private rented sector and secure accommodation.

     

    DESCRIPTION: 

     

    The idea is to set up a Deposit Scheme for service users who are looking to access rented accommodation in the private sector.

     

    Most of our service users find themselves excluded from renting privately because they are not in a financial position to be able to save for a deposit.


    Our deposit scheme would not provide a Bond like most similar schemes, we would provide the landlord with a cash deposit, protected via a Deposit Protection Service account set up in our organisations name, so that we can deal with any deductions at the end of the tenancy and recycle deposits to the next service user.


    So landlords will not have to worry about conforming to legislation, we will also provide landlords with a detailed inventory of the property, assured shorthold tenancy agreement and we will also provide the tenant with all legal documents such as EPC, gas certificate and How to rent booklet, removing this administration headache from landlords, in addition we would sign every tenant and landlord up to CreditLadder, a unique service run by Experian which allows tenants to create a credit history and build a credit score just by paying their rent.

     

    Once the scheme is up and running we will look at other ways to keep money coming into the scheme to ensure we are able to continue to assist service users who do not have deposits.

     

    This is a pilot project, currently we have no previous data to compare this too, however, I have met with similar schemes locally, who offer the Bond as a deposit and their collective figures show that on average the schemes can house 30 people per year and for one scheme they have had no claims against their bond in the last financial year, while another scheme had an average claim rate per year of 1.4%


    Success will be measured by the number of households we can assist to access private rented and to sustain the tenancy after the first term and the deposit is withdrawn.


    We will do this by keeping accurate logs of the number of people we have granted a deposit to and if that person then has their tenancy renewed and if a claim is made or not.

    The level of success of the scheme will be evaluated by the number of claims and tenancy renewals, so a high number of claims and low level of renewed tenancies would indicate the scheme had not succeeded.

    Private rented generally is the only option for most single homeless people who are not owed a duty, and this funding will help people move on to their new home.

    Your Comments...

    (Chief Operating Officer), from London Hi, Sounds very interesting - where are you based? Steven, Glass Door
    (Lettings & Homeless Coordinator), from Hemel Hempstead Hi Steven, I am based in Hertfordshire
    (Drug & Alcohol Outreach Worker), from Brighton Hi Steven, I really like the idea of helping people to build up a credit score. This is so important for people. Best wishes, Martin Curtis (Drug & Alcohol Outreach Worker, Brighton & Hove)
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