Lord Mayor's Deposit Guarantee Scheme

What is the Lord Mayor's Deposit Guarantee Scheme?

If you become a tenant of a private landlord, the landlord may ask for a deposit on top of rent to cover damages.

This deposit usually amounts to a month's rent, a sum which can be difficult to raise if you are on a low income.

This Scheme aims to help people who are in need of housing and on a low income afford to move into private rented accommodation.

The Scheme does this by issuing a Deposit Guarantee Bond to a landlord as a guarantee to cover rent arrears or damage caused by the tenants to the property.

This means that potential tenants on a low income do not have to raise a sum of money for the deposit in addition to the rent. This bond is not a cash deposit.

The tenant may be liable for any costs not covered by the bond, or liable to the Council for any claims made against the bond.

How does it work?

The Scheme works through a three-cornered agreement between the tenant, the landlord and Oxford City Council.

The Scheme issues a bond equivalent to a month's rent to the landlord. The bond promises to pay the landlord fair compensation in the event of rent arrears and/or damage caused by the tenant.

In return, low income tenants or those in receipt of benefits do not have to raise a deposit. This enables a tenant to secure accommodation with the tenancy being overseen by the Scheme.

In the event of the Scheme paying out for a claim of rent arrears, damages or losses by a landlord the Scheme may seek to recover this from the tenant.

Who can apply?

Anyone who is:

• Non-statutory homeless.
• Aged 18 or over
• Homeless or threatened with being homeless
• Receiving benefits, on a low income, or who has no savings or other source of financial assistance
• Has a local connection to Oxford, and has been living in Oxford for at least the last 12 months
• Able to prove to the Lord Mayor's Deposit Guarantee Scheme Officer that they can sustain a tenancy in the Private Rented Sector.

Any appeal is made to the Private Rented Team Manager, whose decision is final.

What is the application process?

To apply for the Scheme you need to go through the steps outlined below:

1. Register with the Scheme and provide income details
2. If accepted on to the Scheme, find suitable accommodation
3. Complete the Local Housing Allowance forms and Tenancy Agreement
4. Move in

NB It is important that you DO NOT move in to the property before you have the full agreement of the Scheme.

Where do I go to join the Scheme?

To book an appointment please contact the following office:

The Lord Mayor's Deposit Guarantee Scheme
St Aldate's Chambers
St Aldate's
Oxford
OX1 1DS
Telephone: 01865 252858
Email: lmdgs@oxford.gov.uk

What happens after I have moved in?

You must contact the Scheme within the first 4 weeks after you move in to the accommodation. The Scheme will offer advice and assistance if needed.

What happens if I want to move out?

You must tell us if you are renewing your tenancy or are moving out. We may visit the property to make sure there are no missing or damaged items or outstanding rent arrears.

If the Scheme were to pay any money to the landlord for rent arrears, damages or loss, you may have to repay us.

The Scheme may not be able to help you again until you have repaid the money.

Important things to note

• The Deposit Guarantee Scheme does not find accommodation for anyone
• The issue of a bond does not guarantee the fitness, safety and suitability of the accommodation
• The Scheme aims to help all eligible people regardless of race, sex, age, disability or religion. We expect landlords to follow the same policy. Any landlord believed to be discriminating against any of the above groups will not be offered the bond.

Saving for your next deposit

New tenants are encouraged to open a savings account with the Oxford Credit Union so that over time you can save enough to cover the tenancy deposit yourself, for this property or another one if you want to move.
Telephone: 01865 777757

Further information and useful contacts

Customer services centres

Please telephone to book an appointment at one of our Customer Service Centres to make an application for Local Housing Allowance.

Housing Needs Team

Telephone: 01865 252858.

The Lord Mayor's Deposit Guarantee Scheme Leaflet (941 kB PDF)

Advice Centres

Information on independent Advice Centres can be found on our Advice Centre page.

Page last reviewed 6 Nov 2009