Companies urged to help employees with loans for rent deposits
The government is urging private companies to follow the example of the public sector and start providing employees with loans to cover deposits on rented accommodation.
It’s part of a push to provide a bigger and better private rented sector.
In February, all government departments agreed to offer deposit loans to staff wanting to take up new tenancies in the private sector. The scheme works in the same way as staff season ticket loans. It allows employees to take some of their salary in advance and then pay it back in instalments over the following months.
The Department for Business Innovation and Skills wants to spread availability throughout private companies. Housing Minister Brandon Lewis said: “With millions of people across the country renting their home we are determined to create a bigger, better private rented sector that is fair to tenants.
“The move will mean thousands of people will be offered a helping hand to rent privately through season ticket style loans from their employers. I hope to see more employers in the public and private sector joining the scheme in the near future.”
The scheme was created by the homelessness charity Shelter and was later taken up by the Greater London Authority. It can be adapted to meet the needs of individual employers.
In schemes run by government departments, the loan is conditional on the deposit being secured in a tenancy deposit protection scheme and has to be paid back within 12 months.
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