Wolverhampton Rent Deposits met with Bond Scheme

Touting at active rent deposit guarantee scheme, Wolverhampton City Council is committed to reducing homelessness. Wulfrunians who lack the necessary funds to access private rental housing may still be able to do so with help from this social scheme.

The Wolverhampton Rent Deposit Guarantee Scheme provides the solution for potential tenants who cannot pay the advance rent and deposit charged by a private landlord. Even though their income is low, as long as they can afford the monthly rate on a proper home, then the scheme can help with the deposit requirement. This effectively halves the upfront cash needed to move in.

The purpose of providing aid is to facilitate new tenancies. Council officials want to reduce the number of poor households who are homeless while simultaneously reducing vacancies in an already tight rental market.

How it works

Tenancy applicants who need help with a deposit down may request a bond that is guaranteed by Wolverhampton City Council. Up to £600 of the required deposit may be guaranteed by Council. Any remainder must be covered by the tenant or through a secondary aid agency.

The landlord must approve the use of a bond instead of an actual cash deposit that is normally kept in the Tenancy Protection Scheme. Not all landlords will agree to participate, though Council can negotiate this process on behalf of residents who plan to sign on for assistance.

During the tenancy, participation in the Super Save Scheme is expected. A £5 weekly deposit may be added to an account at Wolverhampton Credit Union so that future rent deposits may be paid directly by the tenant using amounts saved.

The scheme provides protection to landlords by agreeing to compensate them for damages resulting from destructive actions. Since tenants can rarely pay for these charges, Council would make payment to the landlord. Tenants would be expected to repay these charges to Council, though they can be given adequate time to do so when on a limited budget. An amount could be withdrawn from the credit union account if needed to pay a claim by the former landlord.

Since arrears will not be covered by the bond, applicants must prove that they will be able to afford the monthly rent payments. Additional proof is required if a resident receives Housing Benefit payments that are less than the rent charges.

How to apply

Residents of Wolverhampton may request assistance with initiating a new tenancy by meeting with the Rent Deposit Guarantee Scheme Officer. Enquiries to Housing Options may be made at 01902 551666.

A brief questionnaire may be completed on the phone call. An interview will be conducted at Housing Options to ensure that applicants are a proper match for the funding. Housing Options is located at Council offices on St. Peter’s Square.

Singles and couples as well as households with children may apply. Ages 18 to 59 are included. Lower income households are the target of the scheme, and receipt of welfare payments can help prove that assistance is necessary. Those who are homeless as well as those about to become homeless should apply early since the entire process can take some time.

Anyone experiencing a rent emergency may be referred to hostel or transitional housing programme. The Wolverhampton Rent Deposit Guarantee Scheme is a planned approach to facilitating new tenancies when the rent is affordable, but the upfront payment of two months rent is not.