UK Bill Help

Unlike most other Scottish counties, Angus Council area does not have a government-sponsored bond scheme. Council will not vouch for lower income tenants by providing a bond certificate that can be used to replace the normally required rent deposit. There is something better.

Instead of the normal approach where a resident receives the equivalent of an interest-free loan, low income Angus residents are provided the sole choice of applying for a Discretionary Housing Benefit. This payment or series of payments can be used to put towards both the cash deposit and rent in advance. It can completely free up the upfront cash requirements to establish a new private home tenancy.

Whether Angus Council will decide to follow the footsteps of other areas is debatable. Each council is provided with certain autonomy and discretion to address the housing needs of its citizens.

Most areas utilise a bond guarantee scheme. These schemes have some differences, but they all share some common characteristics. The resident who cannot afford to pay a rent deposit is provided with a bond to use in the place of a cash deposit. Those councils will enter into an agreement with the landlord where they guarantee to pay the costs of damages and in some cases arrears if the tenant fails to honour the terms of their tenancy agreement. Charges eligible for reimbursement to those landlords include damaged appliances, excessive wear and tear and rental arrears. The limit for the reimbursement is listed in the bond agreement, which is usually for an amount equal to one month’s rent.

The reason for the omission of a rent deposit bond scheme in Angus is unclear. It has had positive impacts in other areas.

Even though council does not offer a bond scheme, residents do have the option to pursue a loan privately to pay rent deposit. This can be a risky endeavour since so many of the options are relatively unaffordable. Someone with a poor credit history and a low income might not be able to receive a low interest rate. Residents receiving benefit payments often find it difficult to borrow money unless they turn to dangerous high street payday loans.

Residents could turn to a credit union for a lower rate. Angus Credit Union is one alternative that can provide a loan to use towards a rent deposit.

Even though a bond scheme is not offered, residents can still get help with their rent deposit by turning to Angus Council welfare rights service. These specialists provide housing advice and can make recommendations that a person be approved for a grant. This grant could come from third party charities, though the vast majority are paid through Discretionary Housing Payments.

Anyone having difficulty renting from a private landlord due to a lack of savings may apply for assistance by calling the welfare rights service ACCESSLine on 08452 777 778. The service is based in an office on Carseview Road in Forfar. Council recommends that a resident call in advance to request an appointment instead of dropping in. They can discuss each situation and provide solutions to help someone move into a private home or flat in Angus.