Hackney is one of the first local authorities to introduce such a scheme in line with our commitment to help employees find accommodation in the borough.
How the scheme works
The employee tenancy deposit loan scheme is open to all permanent and fixed-term employees who are expected to remain in service for the following year. The scheme is similar to the season ticket loan scheme.
Employees who require a loan should complete and return a signed copy of the tenancy deposit loan application form to Payroll, 4th Floor, HSC. A scanned form by email is acceptable. Applications must be made by the relevant payroll deadline. New employees may apply for the loan prior to their start date, however it will not be paid to them until they are in post.
The scheme operates under the following conditions:
- The scheme is for new tenancies only. Loans will not be made for existing tenancies.
- The maximum deposit loan available will be £3,000.
- Loans will be recovered in 10 equal instalments from salary payments (or fewer if the employee wants to repay the loan earlier).
- Within 6 weeks of the loan being issued, the employee must submit a copy of the Deposit Protection Certificate. Managers must ensure that deposit protection certificates are provided by employees and placed on personal files.
- Employees that already have other staff loans should be aware that the maximum for all staff loans is not to exceed £10,000. (This is to avoid the loan being classed as a taxable benefit.)
Why we offer this scheme
The average deposit on privately rented property in London is about £1,600. We recognise this is beyond the means of many people currently living with friends or family who wish to move into their own place. The size of a deposit can also be prohibitive for people who are already tenants that want to move house. Often they have to wait a considerable time for their deposit to be returned and don’t have the money for a deposit on a new tenancy. This can lead to people being trapped in one property when they wish to move.
We hope the scheme will encourage our staff to find accommodation within Hackney, but the loan is also available for staff that wish to rent property outside the borough.