Bond guarantee schemes

Landlords should be aware of the operation of Bond Guarantee Schemes and their benefits.

There are various bond guarantee schemes operating across the country. These schemes generally replace the upfront cash deposit and instead guarantee to the landlord, the cost of any damage to the property/rent arrears up to the value of the bond.

If at the end of the tenancy the landlord finds that they need to make a claim they would do so via the bond bank/bond provider.

These types of scheme are generally only available to certain ‘vulnerable’ groups.

For landlords the schemes can:

Provide a guarantee against damage or rent arrears
Provide assistance in getting Housing Benefit processed quickly
In certain circumstances the bond banks can help find tenants
Offer general advice on landlord and tenant matters

The types of services offered may vary across the country, the section below sets out the schemes operating in the West of England region.

>> West of England schemes

Bath and North East Somerset have the Bath and District Deposit Bond Scheme, a joint initiative between charitable, statutory and voluntary agencies in Bath and North East Somerset. The scheme aims to alleviate homelessness by helping people on low incomes gain access to housing in the private rented sector. The scheme is administered by SWAN Advice Network.
North Somerset Council are in partnership with the Woodspring Deposit Guarantee Board and may refer applicants to the Housing Needs Register here if they do not accept a full homelessness duty.
South Gloucestershire Council has a Deposit guarantee Scheme run by the Housing Needs Section and the South Gloucestershire Bond Scheme, run by a registered local charity. Together they provide tenants for owners who wish to manage their properties directly. The council funds a guaranteed bond in lieu of a deposit.
Bristol City Council runs deposit bond schemes which assist households in housing need. Bond workers put prospective tenants in touch with landlords, who retain control over who to offer a tenancy to. Advice and assistance is also offered to landlords throughout the tenancy, including assistance with Housing Benefit claims. The schemes offer a guaranteed bond in lieu of deposit and for family sized properties, may also offer additional incentives such as free insurance or rent in advance.

Contact details of all these schemes can be found in Useful contacts for landlords.

Previous section | Next section

Web Designer