What is the Bond Scheme
The aim of the scheme is to help people in housing need access private rented accommodation, to protect accredited agents and provide support during the tenancy should it be required. It provides assistance to people who cannot afford a cash deposit, as agents are offered a bond in the form of a non-cash contract, replacing the traditional deposit system.
What is a bond?
It is an agreement with the council, which means there is no deposit to pay at the start of the tenancy, but you and your agent/landlord must sign up to the conditions of the bond agreement with the council. This explains to you and your agent/landlord what a claim can be made for if you break the tenancy agreement and difficulties arise. A bond is not a transfer of cash, but a written guarantee issued by the scheme on behalf of you, the tenant.
The bond protects landlords against:
- Damage to the property
- Theft
- Rent arrears (This may not apply to some councils)
- Fraudulent claims
At the end of the tenancy, if any of the above has occurred, then the agent can submit a claim to be reimbursed up to the value of the bond. If a claim is made and upheld, we will treat this as a debt that you (the tenant) are responsible for and you will have to repay the Council. This will also mean that you may not be able to use the bond scheme again, or get social housing in the future. So if you have problems during your tenancy, let the council know so they can help.
Who can have a bond?
Single persons/childless couples
- Who are over 18
- Are on income support
- Or unemployment benefit
- Or incapacity benefit
- Or earning less than £100 per week if single
- Or earning less than £140 per week if a couple
- AND in housing need
Families
- Where one parent is over 18
- In receipt of state benefits if not working
- Or are eligible to receive family credit if working
- AND in housing need
The possibilities of council housing will also be looked into if appropriate( Please speak to your caseworker). In exceptional circumstances requests for bonds will be considered even if the above criteria are not met so please speak to caseworker directly. If you do not have a caseworker please call your local Homeless Persons Unit.
You will be considered to be in housing need if:
- You are homeless
- You are threatened with homelessness
- You are living in overcrowded conditions
- Your health is suffering because of where you live
How does the scheme work?
A prospective tenant identifies a property they want to rent or ask the scheme if any suitable accommodation is available.
The council will then:
- Interview the applicant for suitability to access the bond scheme
- Inspection by the accreditation team to the property to check that it is safe to live in
- Have both parties sign a bond agreement
- Support for the agent and tenant in sustaining their tenancy
- Sign off with both tenant and agent at end of tenancy
How to make a claim against the deposit bond after a tenant has left?
If we need to make a claim against the deposit bond, Lexton London will:
- inform the appropriate council when the tenant leaves
- the appropriate council will inspect the property the day the tenant vacates the property
- Lexton London will send a list of damages and an estimate for the cost of the work you need to do
- the appropriate council will cross-check it against the inventory on their original inspection report
- the appropriate council will then write to Lexton London to confirm the value of damages that they will pay
- Lexton London/Landlord will get the work done and send the appropriate council the original receipts or paid invoices.
The council will then repay your expenditure up to the maximum value of the deposit bond.
The scheme offers a paper bond at the start of the tenancy and the scheme guarantees to meet genuine claims up to the amount of the bond.
Any additional charges will need to be claimed directly from the tenant by the agent/landlord.
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