A new scheme which could help thousands of potential tenants pay their rents has received government-wide support, Housing Minister Brandon Lewis announced today.
The scheme will be the same as having a staff season ticket loan, as it will allow employees to borrow part of their salary upfront and use it for rent payments. Employees then have a year to repay the loan.
The scheme will be available for employees in both the public and private sector. It was created by the homelessness charity Shelter and the Greater London Authority, which is already using the scheme for its staff.
The Department for Communities and Local Government introduced the scheme for its employees last October and since then has been calling on other government institutions and the private sector to launch it as well.
The new tenancy deposit scheme has now received the approval of the Home Office, Ministry of Defence, Department for Work and Pensions, HM Revenue and Customs and the Department of Health.
Commenting on today’s vote of support at Whitehall, 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.
Today’s 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.”
