Reading help with rent deposit from DGS Guarantee Scheme

Landlords and prospective tenants in Reading can both benefit from the DGS deposit scheme. This is a government programme that will provide indirect financial assistance to the person seeking housing in the private sector. If the landlord requires a damage deposit, the scheme will offer them enough help to pay up to one month of rent.

The service is run by the Housing Advice Team, which is located at the Civic Centre. The reason that this programme was created is to try to prevent homelessness in the Reading area. Anyone that is currently sleeping rough can apply as well as families on a low income that need to resettle into a more affordable home.

There are many other elegibiltiy criteria as well. They include that the person needs to be on a low income or some form of government income support. They also need to have a good past tenancy history, exhausted all other financial means (both charities or government programmes) for obtaining a deposit, and have other support needs. The tenant will also need to make future payments on time, as well as agree to save a portion of their income over the next 24 months.

There are many advantages to the landlord of the home. The main one is they won’t lose money if the tenant doesn’t pay their rent on time or if they damage the property. The council will review any claims and if valid, they will make a cash payment to the landlord. The property owner will also have confidence that they are letting to a tenant that has been assessed by the council.

When it comes to the assistance for the tenant, there are many ways DGS can help them as well. First, the bond will help them cover the deposit. Many people, whether they are low income or not, struggle to come up with the cash for this expense. So the Reading scheme will in effect assist by offering up to one month of rent payments.

The Reading Housing Options team also have information on properties that are available. Or in some cases they can assist the individual as they try to find a suitable home or flat. However the demand for any type of affordable housing in Reading is very high, so the properties fill up very quickly. It is usually recommended that the family also look for a home at the same time as they are seeking support from the authorities. They can also use a letting agency for this activity.

Once a property has been found, an acceptance letter will be given to the future tenant. This will help reduce the risk to the landlord as they will then know they will not lose money if enter into a tenancy agreement with the person.

To apply for the DGS Deposit Guarantee Scheme, the team will need to inspect the property first. The family should never enter into a tenancy agreement before that is done. Also, the prospective tenant will need to provide references, proof of housing benefit or income that shows they can afford the rent, and income statement.

Another important criteria is the tenant will need to save their money over up to 24 months. The amount is determined by dividing the amount of the rent deposit by the number of months in the agreement. As over time this the DGS programme will transition into the Government-backed Deposit Protection Scheme. All of this and more needs to be done in order to apply.

For more information drop in at the Civic Centre in Reading. Or to apply, the team can take calls when people ring 0118 937 3787.