Rent In Advance And Deposit Loan Scheme
The council recognises that one of the biggest hurdles to obtaining private rented accommodation is the initial cost of securing a tenancy. Most landlords require a deposit, as well as up to 4-weeks rent in advance. For people on low income, this can present real difficulties. Borough Of Poole operates a Deposit Loan Scheme to help overcome this problem.
Who can apply
Loans may be available to those who are homeless or currently on the housing register and living in difficult conditions. Applicants must also have a priority need for housing. This includes families with dependent children, pregnant women or those who may be vulnerable due to old age or mental or physical disability. There is also a loan available to those not in priority need.
How much help is available
There is a limited budget available and therefore a loan of only the deposit will be offered. You are expected to raise the costs of the rent in advance and also the other possible admin fees or monies required. Each case is, however, treated on its merits and there may be a possibility of more help. Much will depend on what it would be reasonable to expect you to afford and your individual circumstances. If you are in receipt of benefits, you may be able to obtain extra help with the costs of moving and rent in advance through the Social Fund and more information on this can be obtained through your local JobCentre Plus 
. If you have a need to move or find a home we may be able to provide a supporting letter to help with an Social Fund application and this could increase your chances of being successful.
How the scheme works?
You are expected to repay the loan at an agreed monthly amount and you must stick to the agreement that you make or it could jeopardise your chances of future re-housing. Should you leave, the landlord will be asked to repay the deposit to the Council (if there is no damage to the property or rent arrears) unless you have repaid the loan in the meantime.
All loans are paid directly to either the landlord or the letting agents involved and they should be made aware that you are intending to use the scheme and also that you may be making a claim for housing benefit to help cover the rent payments. Not all landlords will accept tenants claiming benefits and you will need to check this with them beforehand.
Housing Benefit is generally paid either fortnightly or four-weekly in arrears and claims can take about 4-6 weeks to process. Prospective landlords need to be aware of this and you should speak to a Housing Adviser if the landlord requires further explanation of this arrangement.
What do I have to do next
You need to find suitable accommodation for you and your family and provide us with the details BEFORE any agreement is signed. We do not operate this scheme retrospectively. The accommodation must be settled and you should be looking for an Assured Shorthold Tenancy which may be renewed. Before we can loan any money, we will also need to have:
- Details of your new tenancy - the full address of the proposed tenancy, the starting date for the agreement, the full name and contact details of the landlord and the amount being charged as start up costs - deposit, rent-in-advance, fees and administration costs. You will need to contribute towards these costs and ensure that the landlord is happy to take you on as a tenant by passing any referencing or credit checks. We cannot loan any money unless and until any checks have been completed and the landlord has agreed to accept you as tenants.
- Identification - We will need to see proof of who you are in the form of a driving licence, passport or similar official document. If you are renting with a partner, we will need to see ID for each of you and all tenants are expected to enter into the loan agreement jointly and severally. We need to see original documents, not copies.
- Proof of Household Members - The Local Housing Allowance (LHA), used to assess your maximum Housing Benefit entitlement, will be based on your family make up. In order to confirm your individual LHA we need to have proof of all household members - adults and children. Our goal is to help people into affordable, sustainable accommodation and we will not loan money unless we are satisfied that you are able to meet your rent commitment. If you have children as part of your family, we will need proof of Child Benefit. This can be either a bank statement or Child Benefit Award Letter. If you have adults living with you as part of your household, they will need to provide ID. All proofs need to be dated within the last four weeks.
- Proof of Homelessness - Our loan scheme operates to prevent homelessness and we need to be satisfied that you are indeed facing homelessness or living in difficult circumstances such that it is not reasonable for you to remain living where you are. Proof of this could include a letter from a parent or relative asking you to leave, official notice from your landlord or court proceedings for possession or eviction.
- Proof of Priority Need - This could be proof that you have children as part of your household (remember - we will need to see proof of these family members - see above), proof of pregnancy from a hospital or GP or proof that you would be vulnerable if you were homeless. If you are unsure about what is required, talk to one of our advisers.
- Bank Details - Our loan is recoverable and you will need to set up a standing order arrangement to repay the loan over the following months. We will need your account number and sort code, as well as the name and postal address of your branch. If you do not have a bank account, the loan will need to be repaid through an order book and you will be able to make payments either through any branch of Barclays Bank or in person at our main Civic Centre offices.
Once you have agreed a new tenancy and provided all the necessary documents or proofs above, you will be in a position to sign up to the loan agreement. You will need to contact your Adviser on 01202 633804 who will arrange an appointment of you to attend our offices to go through the necessary paperwork. Remember - all tenants will need to sign up to the loan and attend this pre-arranged meeting. You will also receive important information on how to claim Housing Benefit and your rights in regard to your tenancy deposit.
NOTE: Any payments we may offer do not guarantee either full or part payment of housing benefit to help with the payment of your rent. All decisions regarding housing benefit entitlements are made by the Housing Benefit section of the Council and it is important that you submit a claim for Housing Benefit as soon as the tenancy is agreed to ensure that you do not miss out on any benefit. It is also vital that once a claim for benefit is submitted, you provide all the necessary proofs requested to ensure that the claim can be assessed and it is your responsibility to ensure that this happens. Failure to actively progress a claim for benefits can result in a nil award of benefit and rent arrears, leading to eviction. If you have any questions, please ask and we will either be able to answer your query or signpost you to someone who can.
PLEASE DO NOT HAND OVER ANY MONEY TO A LANDLORD OR LETTING AGENT UNTIL A LOAN HAS BEEN AGREED WITH US AS YOU MAY NOT BE ABLE TO GET THIS BACK IN THE EVENT THAT WE DO NOT AGREE TO THE LOAN. IF YOU HAVE ANY QUESTIONS OR ARE UNSURE OF WHAT TO DO NEXT, SPEAK TO AN ADVISER ON 01202 633804.
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