The government has announced its support for a new rental deposit loan scheme which will enable thousands of its staff in Whitehall looking to move into rental homes are able to do so.
The new scheme will work along the same lines as a staff season ticket loan to enable employees to borrow a portion of their salary in advance to pay for a deposit.
The money they would be paid back over a year from their salary.
Loan schemes available for rent deposits
The first departmental employees to enjoy the scheme were those from the Communities and Local Government.
Now other departments are offering the scheme and Brandon Lewis, the housing minister, said: “The scheme will see thousands of people being offered a hand to rent privately by using a season ticket style long and we like to see more employees in the private public sector joining the scheme.”
Among those who have joined since its launch, is the greater London authority and the Co-operative Group.
The Co-operative's director of resources, Adrian Shooter, said: “It can be a big ask having to find a hefty deposit and we are always looking at ways to support our colleagues.
Financial help for paying a deposit
“A large number of our 70,000 employees are likely to rent homes from private landlords and this scheme will be invaluable to them.”
He added that with growing numbers of people renting their homes the Co-operative was an employer responding to changing lifestyle needs and wants.
He said the scheme will see employees receiving the money within five days which will help in areas where there is strong competition for rental properties and they can act fast to secure a home.
Labour winning the election could lead to an exodus of landlords
Meanwhile, the Residential Landlords Association (RLA) is warning that large numbers of landlords may leave the private rental property sector if Labour wins the next election.
They say around two thirds of landlords in the UK will leave if Labour bring in their promised rent controls policy.
Labour's rent controls policy is aimed at limiting 'excessive rent rises' and introducing three-year tenancies, among other ideas.
The RLA's chairman, Alan Ward, warned: “The state control of rents would choke off supply, reduce quality and increase rents and this is at a time when tenants are needing more choice on where they live.”
Property analysts are also warning that a proposed 'mansion tax' on properties worth more than £2 million in London will also damage the private rental sector as landlords opt to cash in rather than continue renting out anymore properties.
