Deposit Guarantee Scheme (DiGS)
DiGS was established in June 2004 and is currently managed by The Community
Housing Advocacy Project (CHAP) and is jointly funded by East Ayrshire
Council and Ayrshire and Arran NHS. The scheme is also supported by a
steering group which consists of local key stakeholders from Social Work,
Housing, Housing Benefit, Citizens Advice Bureau and landlords.
The Deposit Guarantee Scheme provides the 'guarantee' of a rent deposit
which is payable to the landlord at the end of the tenancy if any loss
or damage is incurred. The deposit enables those who are on a low income,
and thus unable to raise a deposit on their own, to access the private
sector.
For further information on the scheme please contact the Rent
Deposit Officer.
What is DiGS?
DIGS provides the 'guarantee' of a rent deposit, payable to the Landlord,
at the end of the tenancy, if any loss or damage is incurred. The deposit
enables those on a low income and unable to raise a deposit on their own,
to access the private sector.
How long is the guarantee in place for?
This will vary from between 6 and 12 months dependent on the tenant's
personal circumstances, their support needs and the duration of the tenancy
agreement. However there would have to be a planned exit strategy for
tenants, providing support to enable them to take ownership of the deposit.
Research has shown that where tenants have been involved in saving a deposit,
they are less likely to abscond or damage the property. This would also
protect the scheme from having too many deposits in place at one time
and therefore putting it at risk of not being able to meet all potential
claims.
What is covered by the guarantee?
The deposit guarantee would cover any damage to the property or loss
of rent up to the agreed value. This would also cover the situation where
the tenant abandons the tenancy without notice and there is a loss of
rent. However with a database of tenants available it would be hoped that
the property could be re-let quickly therefore minimising the amount of
rent lost. Loss or damage would cover all items not covered by household
insurance, including wall and floor coverings.
What will not be covered by the guarantee?
It will not cover:
- Professional Cleaning costs. However tenants will be encouraged, with
support to ensure that the property is left in an acceptable condition.
- Unpaid bills and personal debts to the landlord or damage to communal
areas.
- Rent arrears arising from the difference between the eligible amount
of Housing Benefit awarded and the rental price of the property.
The amount of the deposit guaranteed would not exceed the rental value
estimated by Housing Benefit.
Are all Landlords able to access the scheme?
Landlords would be expected to meet a range of good practice criteria
(as recommended by HomePoint, Communities Scotland), to be involved in
the scheme. This would include:
- Provision of a legally binding, written tenancy agreement
- Provision of an accurate rent record
- Ensuring that the accommodation is suitable for the size of the household
- Ensuring that the property must be in good repair and condition
- Being free of conviction for illegal eviction or harassment
- Where the property is subject to a mortgage, the landlord must receive
the permission of the lender to let their home
- Giving reasonable notice before accessing the property for repairs
- Provision of a copy of the gas safety certificate - issued by a CORGI
registered installer
- Ensuring that gas, electric and furniture safety requirements are
met
- Respecting the tenants right to peace and quiet
- Following the proper legal procedures if they want the tenant to leave
- Maintain the structure and exterior of the property, and fulfill their
obligation to keep the property in good repair
What are the criteria for tenants to access the
scheme?
The scheme has been developed to assist those who are
- Over 25 years (unless they have dependants)
- Threatened with becoming homeless within two months
- In receipt of benefits
- Unable to raise a deposit by their own means
- Able to sustain a tenancy with minimal support
Will the Housing Benefit payments be set up quicker?
At the moment we are not in a position to fast track housing benefit
claims within the scheme due to the cost implications of this. However
it is in the interest of the scheme as well as the Landlord to ensure
that benefits are in place as soon as possible. As part of our application
process we will ensure that Housing Benefit applications are completed
and submitted efficiently. In addition, access to a support worker will
also offer the tenant support to deal with any Housing Benefit problems
It is proposed that the housing benefit payment is made directly to the
landlord. The tenant will be requested to advise DiGS of any changes to
this arrangement. Housing Benefit section will also notify the scheme
of any changes made by the tenant. This procedure is being implemented
in the pilot scheme and will be reviewed thereafter.
Can tenants use the scheme more than once?
Tenants are able to access the scheme on more than one occasion. However,
those using the scheme a second time are refused assistance if they have
stolen or caused damage at the previous addresses, or are in debt to the
Council in respect of the first guarantee.
What are the benefits for the Landlord?
- Access to a letting / re-letting service
- Reduction in void periods and loss of rental income
- DiGS would interview tenants and obtain reference prior to contact
with the Landlord.
- Access to the services of the Private Sector Liaison Officer and DiGS
officer.
- Access to The East Ayrshire Council Tenancy Support Team
- Assistance with devising a tenancy agreement
- Provision of an inventory and an inspection checklist for the property
- Provision of a 'mediator' between tenant and Landlord in the event
of any difficulties
- Access to information and advice on good practice.
- View the latest evaluation for the DiGs Scheme
Private
Rented Housing
Find out more about Private Rented Housing
How can I find out more about the scheme?
If you have any questions or comments on the
rent deposit guarantee scheme please
contact the DiGS Officer.
|
|
|
|
|
| 
RSS