Hinckley and Bosworth deposit and rent schemes

Residents of Earl Shilton, Hinckley and Market Bosworth who have difficulty coming up with a rental deposit may be able to get assistance to move in. The local council can help people by providing cash aid and guarantees to meet the move-in requirements of prospective landlords.

The Hinckley and Bosworth Borough Council provides two specific ways for local residents to obtain assistance with a security deposit.

Prevention loan scheme

In some situations the council can provide the necessary funding to help local residents meet the requirements to move into a new rental property. Up to £500 may be paid towards a security deposit requirement by a private landlord. This can help a tenant come up with the full deposit amount.

Additionally, a full month’s rent can sometimes be provided on behalf of a prospective tenant who needs to fund the first month’s payment plus a security deposit prior to moving in. This is a standard requirement for most rental units. The funds can be paid in advance, thereby meeting the landlord’s requirement of a full month’s rent be paid along with a security deposit, which also usually consists of a full month’s payment. While some private landlords have begun requesting 6 weeks of rent as a deposit, the council’s prevention loan scheme only goes up to a £500 deposit. The applicant would have to provide the rest of the bond.

This is a loan that must be repaid in full by the tenant. It allows for an excellent alternative to other loan options which may carry expensive finance charges.

Cashless bond scheme

The council recently began guaranteeing rental deposits as an alternative to fronting the cash. While this is a different approach than the prevention loan scheme, it accomplishes the same result.

A landlord who accepts the terms of the cashless bond scheme will receive a guarantee from the council to cover any charges normally allowed under a standard rental contract. This could include damages or excessive cleaning costs as is allowed by the lease agreement.

The perk for the landlord is that they no longer have to worry about ensuring the safe keeping of the tenant’s deposit. They simply submit their cost receipts to the council in order to receive appropriate reimbursement.

While the primary focus is on rental security deposits, funds may in some cases be used for arrears also. For more information, interested tenants may call the Housing Options Officer at 01455 238141. Drop-in visits are also welcome without prior appointment at the council offices located just down Hawley Road from the Railway Station. Visit the Hinckley Hub on the corner of Rugby Road and Hawley Road in Hinckley.