Council Guarantor Scheme - Secure a Rental Without a Private Guarantor

The Council Guarantor Scheme: How It Helps Tenants Secure Rentals

Renting a home can be challenging, especially if you don’t have a guarantor—a person who agrees to cover your rent if you’re unable to pay. Many landlords require a guarantor, especially if the tenant has a low income, is a student, or has poor credit. However, not everyone has access to a guarantor, which can make it difficult to secure a private rental. That’s where the council guarantor scheme comes in.

This scheme, offered by local councils, helps tenants by acting as a guarantor on their behalf, allowing them to secure private rentals. In this guide, we’ll explain how the council guarantor scheme works, who is eligible, and how it can help tenants access housing when they don’t have a guarantor.

What is the Council Guarantor Scheme?

The council guarantor scheme is a support service provided by some local councils in the UK. It helps people who are unable to find a private guarantor to rent a home in the private sector. Through this scheme, the local council steps in and acts as a guarantor for the tenant, promising to cover rent or damages if the tenant is unable to meet these obligations.

This scheme is particularly helpful for individuals who may struggle to meet standard private rental requirements, such as:

• Low-income households
• Students
• Young people leaving care
• Individuals with poor credit history
• Homeless individuals or those at risk of homelessness

The aim of the council guarantor scheme is to make private renting more accessible to those who might otherwise be excluded from the market due to a lack of financial backing.

How Does the Council Guarantor Scheme Work?

Here’s how the council guarantor scheme typically works:

1. Application to the Scheme

The first step is applying to the scheme through your local council. You’ll need to provide details about your financial situation, housing needs, and why you require a guarantor. The council will assess your application to determine if you qualify for the scheme.

2. Council Becomes the Guarantor

Once your application is approved, the council will act as your guarantor for the private tenancy. This means they’ll guarantee the rent payments and any damages or unpaid rent if you fail to meet your tenancy obligations. This assurance makes landlords more likely to rent to you, even if you don’t meet traditional criteria.

3. Securing a Private Rental

After being accepted into the scheme, you can begin looking for a private rental. Landlords who are open to the scheme will receive a formal guarantee from the council, reducing their risk. The council will usually have guidelines on which types of properties qualify under the scheme.

4. Managing Payments and Tenancy

Once you secure a rental, you are responsible for paying your rent as agreed. If you default on rent payments, the council may cover the shortfall under the guarantor agreement, but you will still be liable to repay the council for any missed payments or damages they cover on your behalf.

Who is Eligible for the Council Guarantor Scheme?

Each local council sets its own eligibility criteria for the guarantor scheme, but generally, the scheme is designed for individuals who:

• Lack a private guarantor: This may include young people, students, those on low incomes, or individuals without family or friends able to act as guarantors.
• Are unable to meet private rental requirements: This could include tenants with poor credit history, low savings, or those at risk of homelessness.
• Meet local residency requirements: Councils often require that applicants live or work in the local area to be eligible for the scheme.
• Have a housing need: Councils will assess your housing need to determine if the scheme is suitable for you. This often applies to those who are homeless, at risk of homelessness, or in unsuitable accommodation.

It’s important to contact your local council to confirm the specific eligibility criteria for their guarantor scheme.

Benefits of the Council Guarantor Scheme

The council guarantor scheme offers several benefits for tenants and landlords:

For Tenants:

• Access to Private Rentals: The scheme opens up private rentals to individuals who might otherwise be unable to secure a tenancy due to lack of a guarantor.
• Reduced Financial Barriers: Many landlords require large deposits or guarantors with significant income. The council guarantor scheme removes this barrier by providing the guarantee.
• Security and Support: Knowing the council is backing your tenancy can provide peace of mind, ensuring you can rent a home even if you face financial difficulties.

For Landlords:

• Reduced Risk: The council provides a guarantee to cover unpaid rent or property damage, making landlords more willing to rent to individuals without traditional financial backing.
• Steady Rental Income: Landlords are assured that, in the event of a tenant default, the council will step in to cover any arrears or damages.
• Access to More Tenants: The scheme broadens the pool of potential tenants, helping landlords fill vacancies faster.

Challenges and Limitations of the Council Guarantor Scheme

While the council guarantor scheme provides essential support for tenants, there are some challenges and limitations to be aware of:

• Limited Availability: Not all councils in the UK offer a guarantor scheme, and the availability of the scheme may depend on local resources. Tenants should check with their local council to see if the scheme is available.
• Landlord Acceptance: Some landlords may be hesitant to accept council-backed guarantors, preferring private guarantors or tenants who meet traditional criteria.
• Responsibility for Repayment: If the council covers any missed rent or damages on your behalf, you are still liable to repay the council for these costs. Failure to do so may affect your future eligibility for housing support.

How to Apply for the Council Guarantor Scheme

To apply for the council guarantor scheme, follow these steps:

1. Contact Your Local Council: Visit your local council’s housing department or website to inquire about the scheme and obtain an application form.
2. Complete the Application: Fill out the application with accurate information about your housing situation, financial status, and need for a guarantor.
3. Provide Supporting Documents: You may need to provide proof of income, residency, or any benefits you receive to support your application.
4. Await a Decision: The council will review your application and determine if you are eligible for the scheme. They may conduct an interview or ask for further information before making a decision.
5. Begin Your Search for a Property: If approved, you can start looking for a private rental that accepts the council guarantor scheme.

How Fraser Bond Can Help

At Fraser Bond, we provide expert advice and support for tenants navigating the rental market. Whether you’re struggling to secure a guarantor or need help finding a suitable property, we offer the following services:

• Property Search: We can help you find rental properties that accept council guarantor schemes or other housing support options.
• Tenant Support: Our team provides guidance on applying for guarantor schemes, housing benefits, and other rental assistance programmes.
• Landlord Services: We assist landlords in understanding the benefits of the council guarantor scheme and help connect them with suitable tenants backed by the scheme.

Conclusion

The council guarantor scheme is a valuable resource for individuals who need assistance securing a private rental but lack a traditional guarantor. By offering financial backing and reducing risk for landlords, the scheme helps tenants access housing they may otherwise struggle to obtain.

If you’re interested in applying for the council guarantor scheme or need assistance with renting a property, Fraser Bond is here to help. Contact us today for expert advice and support in securing your next home.