What is the Tenancy Deposit Guarantee Scheme?
“I am unable to move into decent private rented accommodation because I have problems affording the deposit. Is there any help for me?”
If you are unable to move into decent private rented accommodation because you cannot afford the deposit, the Tenancy Deposit Guarantee Scheme could help.
The scheme is designed to help people on low income access good quality private rented accommodation and will achieve this by providing a private landlord with a tenancy deposit guarantee of a maximum value of £500 for the first 12 months of the tenancy.
Who can apply under the scheme?
Eligible persons are adults aged 18 or over who:
- Have not had a tenancy covered by a previous tenancy deposit guarantee certificate
- Are living in South Tyneside
- Need to move to South Tyneside to take up employment
- Need to move to South Tyneside to care for a relative or to be cared for by a relative
- Are in reciept or eligible to receive income support
- Are living in insecure, temporary or bed and breakfast accomodation
- Are homeless or being threatened with homelessness
How much is the Tenancy Deposit Guarantee?
The Tenancy Deposit Guarantee Scheme will guarantee up to £500.
No money is paid to the landlord at the beginning of the tenancy. Instead, the landlord and the tenant will enter into an agreement with the council. If the landlord has suffered a loss during the first 12 months of the tenancy, the landlord can submit a claim to the council for compensation up to a maximum of £500.
What does the Tenancy Deposit Guarantee cover?
The guarantee covers upaid rent and/or damage to the property or its fixtures and fittings, (except for wear and tear) occuring during the first 12 months of the tenancy, up to a maximum value of £500.
The tenant must provide any bond which the landlord may require at the end of the first year of the tenancy.
What happens when I apply?
You will be interviewed and you must be able to demonstrate a commitment and an ability to comply with the terms of the tenancy.
You will be provided with support to complete Housing Benefit claims and you will also be provided with other support appropriate to your individual circumstances (for example financial advice). You must save money so that you can pay the bond to the landlord if the tenancy lasts for more than a year.
How does the scheme operate?
Once you have been issued a Tenancy Deposit Guarantee Certificate you will be able to negotiate your tenancy with a landlord.
To proceed with the tenancy the property will then undergo a housing standards inspection to assess its freedom from hazards that may affect any occupier’s health and safety. The rent must be no more than the market rent and the tenancy agreement must be easy to understand.
The landlord, council officer and you must sign an agreement and a property inventory.
Tenancies must be 12 month assured short hold tenancies and the Tenancy Deposit Guarantee will be limited to the first 12 months of a tenancy. You will be expected to meet the deposit requirements should you continue the tenancy beyond the first 12 months.
When the tenancy ends but before you have vacated the property you must make the property available for inspection by a council officer and the landlord. You must notify the council when you wish to terminate the tenancy.
How does the landlord make a claim under the scheme?
Claims against the Tenancy Deposit Guarantee will only be accepted after the first 12 months of the tenancy or, if sooner, at the end of the tenancy. Any claim must be made within 15 months after the tenancy starts. When a claim is made the council will, if satisfied, pay the landlord an agreed sum and seek recovery from the tenent.
Important notice for landlords
Any claims on the guarantee will be subject to the landlord being able to demonstrate effective management of the tenancy throughout its term so that any losses are minimised.
It is the responsibility of the landlord to satisfy himself of the prospective tenant’s suitability. Except for the specific issues covered by the guarantee the council will not be liable for any act or omission of the tenant.