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 loss or damage caused by 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 and may not cover rent arrears. The tenant may be liable for any costs not covered by 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 the fair compensation in the event of damage caused by the tenants.

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

In the event of the Scheme paying out for a rightful claim of damage or losses by a landlord the Scheme may seek to recover this from the tenant.

Who can apply?

Anyone who is:

• Aged 18 or over, and
• Homeless or in need of housing, and
• Receiving benefits, on a low income, or who has no savings or other source of financial assistance.

All applicants must have a local connection to Oxford.

What is the application process?

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

• Register with the Scheme and provide income details
• Find suitable accommodation
• Complete a Landlord's Agreement form and return it
• Complete the Local Housing Allowance forms and Tenancy Agreement
• Arrange for the Scheme to visit the accommodation
• Move in

It is important that you do not move in to the property before you have full agreement of the Scheme.

Where do I go to join the Scheme?

To book an appointment please contact us using the details on the right of this page.

What happens after I have moved in?

We will contact you after you move in to the accommodation to check that everything is okay. We 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.

If we have to pay any money to the landlord for damages or loss, you may have to repay us.

We 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

	Oxford Credit Union website

New tenants are encouraged to open a savings account with the Oxford Credit Union. For full details, please telephone the Oxford Credit Union on 01865 777757.

Further information and useful contacts

For further information please book an appointment at one of our Customer Service Centres by phoning 01865 252849 or contact our Housing Needs Team using the contact details on the right on this page.

Information on Independent Housing Advice Centres can be found in our links library.

Page last reviewed 29 Sep 2008