Financial payment to help obtain accommodation

If you are in financial hardship, there are several options which can provide you with financial help so that you can find a new home, including: 

• a rent deposit and/or rent in advance payment;
• a discretionary housing payment;
• benefits to help you pay housing costs; and
• an interest-free loan from the Department of Work and Pensions. 

You can search for schemes on the Help to Rent Database at the Crisis website or look at our own Self Help Scheme which will give you more information about what help is available from us directly. 

Landlords will usually ask for a deposit to be paid before you move in to cover the costs if you do not pay your rent or damage the property. Also, rent is usually paid in advance, and landlords will normally ask for a month’s rent in advance when you move in. If you cannot afford to pay either, or both, we may be able to help. 

When you move out of your accommodation, the deposit is returned to us. If there are any deductions, for example due to damage to the property, we may ask you to pay us back for that amount. Depending on your circumstances, we will sometimes ask for the deposit to be treated as a loan which you repay on a monthly basis. If we do this and you fully repay us, the deposit held by the landlord will be returned directly to you (minus any deductions). 

Rent in advance and deposit schemes 

Our schemes help those who are homeless, or facing homelessness, in securing private rented accommodation, and are dependent on funding available. 

The schemes are for people who cannot raise funds to secure private rented accommodation themselves. If you can borrow the money from elsewhere, you’re not normally eligible for the scheme. 

We’ll ask for your bank statements and proof of your income and savings to establish how much assistance you need and whether you can afford the property you have found. It’s important you provide these documents as soon as possible to avoid any unnecessary delays. 

Rent in advance 

This is where a landlord requires rental money in advance of a tenancy commencing. Assistance may be provided through a repayable loan paid direct to the landlord. The loan must be repaid in regular instalments. 

Deposits 

Landlords usually require a deposit, which they should protect in a national deposit protection scheme until the end of a tenancy, as security against damage or arrears. We would provide a deposit direct to a landlord, which in some cases could be arranged as a loan with you. Where a loan is used, this must be repaid on a regular basis, meaning you could have some funds returned to you at the end of the tenancy, unless any deductions are made for damages or arrears. 

We may also arrange a deposit directly with a landlord, but not arranged on a repayable loan basis with you. In these cases, we only ask you for payment at the end of a tenancy if we recharge you for any damage caused or rent arrears. 

Who is eligible for the schemes 

You are eligible if you have been assessed by our Housing Options Team, and we have accepted a duty towards you as being either homeless or threatened with homelessness. 

Contact our Settled Homes Team for further information and to apply SettledHomes@WalthamForest.gov.uk  

There are a number of checks we need to undertake before we can authorise a payment. We are unable to make any retrospective payments, so please do not make any payments to a landlord or agent, as we will not be able to reimburse you. 

If you receive housing benefit or the universal credit housing element, you may be able to apply to us for a discretionary housing payment. 

Discretionary housing payments are payments we can make to help you with your housing costs, which usually cover rent, but can also cover deposits, rent in advance and other lump sums, such as removal costs. 

A discretionary housing payment is sometimes paid direct to your landlord, and you usually do not have to repay it. 

See advice on discretionary housing payments for more information. 

You may be entitled to claim housing benefit or the housing element of universal credit to help you to pay your rent. 

These will usually be paid directly to you to pass onto your landlord, but can sometimes be paid straight to your landlord. 

Find out more about how to claim housing benefit or universal credit. 

If you claim certain low-income benefits, you can apply for an interest-free loan from the Department of Work and Pensions. You must have been claiming the benefits for at least 6 months. 

The loan must be repaid, usually within two years, and repayments will be deducted from your benefits. You can find out more about Budgeting loans.