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Council to pay £30,000 towards private rental sector deposits

A council has agreed to set aside £30,000 to pay for private rental deposits as a cheaper alternative to bed and breakfast accommodation.

The ruling cabinet of Stafford council in the Midlands has agreed a plan to help what it calls the “hidden homeless” who need a one bed property just as there is a shortage of council or social rented accommodation that fits the bill.

A proposal says it can cost over £10,000 to place a person in bed and breakfast accommodation for the average waiting time of seven months before a one-bed unit becomes available.

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Instead, paying a £1,300 deposit towards a private rental apartment of the same size would be more cost effective; the typical rent in the area is some £525 pcm.

So £30,000 has been earmarked from the local authority’s Homelessness Prevention Grant - a central government grant.

The concept has been underway in the area for some time and Stafford's proposal, which you can see in detail here, states: “In the year 2019-2020, Stafford Borough Council’s Housing Options team assisted 59 people to access accommodation in the private sector; 28 were for homelessness prevention and 31 were homelessness relief. This compares to 161 people who were housed in social housing and 55 in supported housing.

“There are significant barriers for households with complex needs who cannot access social housing and have to wait in unsatisfactory accommodation whilst protracted and sometimes failed negotiations with landlords take place. This waiting can have an adverse effect on the client’s health and wellbeing, including mental wellbeing, and make rehousing more difficult.

“The Covid-19 pandemic has brought additional pressures on many households nationwide. A cohort of ‘hidden homeless’ were initially brought to the forefront of homeless service provision during the first lockdown; sofa surfers or those staying with family and friends in insecure accommodation who are at risk of rough sleeping.

“High levels of demand for rehousing due to relationship breakdown have continued throughout the past 12 months. In the near future, when the ban on evictions is fully lifted, a significant increase in homeless presentations is anticipated as a result of rent arrears, both from circumstances prior to the pandemic, but also stemming from Covid-related impacts such as job losses and reduced working hours.”

The private rental sector is unusually small in Stafford, accounting for only 10 per cent of the housing stock.

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    It's all very well providing the deposit but it's the rent payment's and those wanting everything for free that are the problem. They have identified that rent arrears is a problem so why pay the deposit? Probably because the deposit can more often than not get returned but rent dissapears into the black hole of non payment by tenants.

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    Taking on one of these tenants would be a nightmare, chances of the rent being paid would be low, then there is the time and costs of evicting them, thanks but no thanks.

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    This needs serious thought, right given it serious thought, No Way!!

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    If Staffordshire council are so confident these tenants will pay their rent they would pay 6 months rent in advance to LL and collect rent back off the tenants themselves.

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    The tenant has no skin in the game its not there deposit money so why would they take care and look after the property. Very short sighted of the council.

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    It’s an insult to our intelligence. The people you are taking on are failed tenants/mortgagees. I’ve been calling for the common sense solution and that is 3yr commercial contracts self repairing with the council enforceable with law. We can then sue the council when they don’t keep to the contract.
    A great way for us to raise money eh

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    They can stick their tenants and their deposit

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    But you would take away their human rights as the sun does not shine there and as we know we are all entitled to everything for free.

     
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    The local council where I live and work (South Gloucestershire) have been doing this for some time. One of our tenants had her deposit paid by the council with the proviso that she paid it back over a period of time so will now have a deposit to take with her if she moves on. She elected to have her benefit paid direct to us and has been a good tenant for the past 5 years with no arrears or major problems. By the way, she was, and still is, also a single Mum. Just goes to show that you can't tar everyone with the same brush and a case by case decision can work.

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    Of course not everyone in this situation is a bad tenant - but too many are for me to take the risk.

     
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    Emily Simmons,
    Good to hear about your positive experiences in South Glos..
    I empathise with single parents, but after having had a few bad experiences with working (at the start of tenancy) single mother (Brazilian & Portuguese passports), I would certainly not rent my property to a single parent.
    And neither will I rent to someone on benefits-even if the council paid me £100 million as a deposit, or as ARO.
    My tenant rented as a single parent, subsequently brought in her mother, 3 children under 10 with different surnames, and 2 boyfriends within 4 months, then refused to leave when I gave s.21 notice resulting in a cost of over £20k for eviction, bailiffs, lost rent and repairs.
    Thanks council’s for the offer of deposit, and direct rent payment to landlord but no Thanks. I would rather leave my property vacant then take a council recommended/supported tenant.
    Best wishes to those LL’s who are happy to do so.

     
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    Wait until they move the moron boyfriend in, then the trouble starts

     
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    I've always worked on the basis that if they can't come up with the deposit they are going to struggle to pay the rent. It's a no from me.

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    I would be a model Tenant if I and my offspring was kept and housed for free for 5 years, I should think so to, how anyone thinks this is fine is beyond me while others working their guts out to rear the family and pay the Mortgage.

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    just say no

  • George Dawes

    They must be desperate lol

  • George Dawes

    I'd ask for ten years rent up front no refund

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