ISLANDERS who can afford their rent but not the deposit can now receive help from a new interest-free loan scheme.
Run by Guernsey Community Savings and backed by a one-off £50,000 grant from Employment & Social Security, the scheme will lend eligible applicants the money for a rental deposit and, where needed, rent in advance, with no extra charges.
‘With the ongoing shortage of social and affordable housing, the private rental market is the only realistic option for many islanders on low incomes,’ said Community Savings chairman James Ellis, pictured.
‘But finding a deposit which costs £2,000 on average, often alongside a month’s rent in advance, can be an insurmountable barrier, even if you can afford the ongoing rent.
‘This scheme is a natural extension of GCS’s work to tackle financial exclusion. We have spent the past six years building a trusted service for people who struggle to access mainstream banking, and we are well placed to administer a scheme that meets this very real need.’
To qualify, applicants must have been permanent residents for at least 12 months, be eligible to live and work locally, and show they can afford both the rent and the repayments, taking into account any benefits they receive.
Once a loan is approved, the money will be paid directly to the landlord and a repayment schedule agreed with the applicant. GCS aims to make decisions within 48 hours, as speed can be crucial in securing a property.
‘This scheme is a great example of what can be achieved when government, charities and community organisations work together to solve a real problem facing islanders,’ said ESS president Deputy Tina Bury.
‘For many people, finding the money for a deposit is the final hurdle to securing a home. By providing practical support at the right time, we can help people access stable accommodation while reducing the likelihood they’ll need more intensive support later on.’
The scheme replaces the current case-by-case arrangement through ESS and the Offenders Deposit Assistance Scheme, set up around 10 years ago to help ex-offenders find accommodation.
‘We are particularly pleased that ex-offenders are included among those eligible for these loans, and on terms very similar to those available through ODAS,’ said ODAS chair John Robinson.
Charlie Cox, chief executive of At Home in Guernsey, said overcoming that initial barrier ‘can be the difference between being able to secure a home and remaining stuck without one’.
‘We’re really pleased to see this practical partnership approach developing and hope the scheme will help more islanders access the safe, stable accommodation they need.’
GCS chief executive Joe Brown said the organisation was seeking further funding.
‘As loans are repaid, the money will be recycled to help other islanders, allowing the scheme to support more people over time,’ said Mr Brown.
Action for Children and the local Landlords Association were also involved in establishing the scheme.
More information is available at www.gcs.gg.
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