Aberdeenshire rent deposit guarantee scheme

Aberdeenshire Council has implemented a successful deterrent to homelessness for its citizens. The Rent Deposit Guarantee Scheme is essentially an interest-free bond that can be used to establish a rent deposit. This is accepted by many private landlords who consent to a partnership with the council in order to reduce vacancies in their property inventory.

Lower income residents often fail to save enough so that they can afford to pay both the deposit and the rent in advance. Some can rely on family or friends to help them out. Others resort to High Street loans that carry extortionary terms. This bond scheme allows for an alternative that enables access to private rented housing even if the resident does not have enough cash to pay all of the upfront costs.

A resident who qualifies as coming from a low income household with little savings can enter a new tenancy with the use of a bond instead of a cash deposit. The resident is still responsible for rent in advance for the first month, any damages beyond reasonable wear and tear and any arrears resulting from unpaid rent.

The scheme will cover the costs of these charges up to the amount of the agreement, which is written for one month’s rent. The landlord may request reimbursement of approved charges up to this amount and must pursue any overage from the tenant.

Aberdeenshire Council will also pursue reimbursement of charges that it pays through the scheme. They will work with the resident to make this repayment easier. Often an instalment plan is approved that will allow for this repayment to occur over many months so that it is easier for the resident to fit into their tight budget.

Any resident with a local connection to Aberdeenshire may apply for the scheme if they are in a situation where they might become homeless without the assistance. It is intended to be used only once by a resident so that they are able to save for subsequent tenancies over many months. A resident may apply to the scheme more than once as long as they do not have a history of leaving arrears through the scheme.

To request a financial assessment and submit an application for the scheme, residents may visit their closest housing office:

• In the Banff area residents may call 01261 813259 for Banff and Buchan office on 32 Low Street.
• A second Banff and Buchan office is available for Fraserburgh residents. Enquiries may be made on 01346 514866 or they may visit the office on 55 Mid Street.
• Huntley residents may call on 01466 794121 for the North Marr office on 25 Gordon Street.
• The Garioch and Formartine office is located in Inverurie on Blackhall Road. Call on 01467 620981 to request an appointment.
• Peterhead residents may call the Buchan office on Broad Street. Telephone is 01779 477363.
• In Stonehaven, the Kincardine, Mearns and South Marr office is located on 16/22 Allardice Street. Appointments are available by calling on 01569 768562.

A Homeless Prevention team member will review each application and confirm the merits of each request. Each request for aid is considered carefully. Helping people establish tenancies when they can afford to pay the rent is important to Aberdeenshire Council. They are willing to step in to provide assistance when it is necessary for a resident who cannot save the money on their own.

Staff are well aware of the higher costs some citizens pay for short-term living situations. When the Council has to pay for temporary accommodation it can be expensive as well. The rent deposit guarantee scheme is a cheaper option that provides residents with the chance to live independently and without taking on debt by borrowing the money from high cost lenders.

Residents may contact their closest housing office with enquiries or to receive help with submitting an application.

Additional housing assistance is provided by the faith based Bethany Christian Trust. The charity operates several services for both the low income and homeless. Some people can be moved into a hostel, which can be used to allow the person to save their income for a deposit. Other support is also available, including signposting and free advice on how to apply for council deposit schemes. Read more Bethany Christian Trust programmes.