x
By using this website, you agree to our use of cookies to enhance your experience.

A scheme pioneered in London offering workers an interest free loan to pay for their deposit on a rented home is being rolled out across the country.

The scheme was introduced last year by housing charity Shelter and London mayor Boris Johnson last year, with the Department for Communities and Local Government becoming the first Whitehall department to adopt it. Now it is being promoted UK-wide.

It works like the season ticket loan programme already offered by many employers to help commuters pay for their travel costs.

The Co-operative Group will be the first major employer to offer it to their 70,000-plus employees across the UK, and now Boris Johnson is calling on employers throughout the capital and the country to adopt the scheme.

He claims that renters in England pay an average of over £1,200 for deposits when they move into privately rented homes while in London the average is £1,859.

Many people living in private rented accommodation are forced to borrow money to pay for their tenancy deposit and are put in debt before they have even moved into their new home. By rolling out this scheme nationally we will be able to ensure that employees can secure a home without enduring unnecessary financial difficulty he says.

Perhaps with an eye to a larger platform than that of London alone, Johnson adds: This is the latest part of my comprehensive strategy for the private rented sector.

While the scheme can be adapted by different employers to suit their needs, in principle, employees are offered interest-free loans to pay their deposits when they move into a privately rented home. The loans are then paid back through salary deductions over the course of up to a year.

Comments

  • icon

    ^that is a very judgemental ignorant thing to say, i take it your minted then, i think this scheme is great and helps people affiord housing they wouldnt ordinarily be able to access

    • 06 February 2015 22:13 PM
  • icon

    This is great initiative. However, if you cannot afford a deposit should you really be entering into a tenancy in the first place

    • 05 February 2015 19:38 PM
MovePal MovePal MovePal