Guernsey Community Savings is launching a new interest-free rental deposit scheme to help islanders who are unable to afford the upfront costs of securing a home in the private rental market.

Run by GCS and supported by an initial one-off grant of £50,000 from Employment & Social Security (ESS), the rental deposit scheme will provide interest-free loans, with no additional charges, to eligible applicants to cover rental deposits and - where required -rent in advance.

GCS Chair James Ellis said:

‘With the ongoing shortage of social and affordable housing, the private rental market is the only realistic option for many islanders on low incomes. But finding a deposit which costs £2000 on average, often alongside a month’s rent in advance, can be an insurmountable barrier, even if you can afford the ongoing rent.

‘This scheme is a natural extension of GCS’s work to tackle financial exclusion. We have spent the past six years building a trusted service for people who struggle to access mainstream banking, and we are well placed to administer a scheme that meets this very real need.

‘Given the pressures on Guernsey’s housing market, this is likely to remain a critical issue for many years. We hope the scheme will make a real difference by helping more people secure a home.’

Deputy Tina Bury, President of the Committee for Employment & Social Security, said:

‘This scheme is a great example of what can be achieved when government, charities and community organisations work together to solve a real problem facing islanders. For many people, finding the money for a deposit is the final hurdle to securing a home. By providing practical support at the right time, we can help people access stable accommodation while reducing the likelihood they'll need more intensive support later on.’

The scheme is specifically aimed at providing a single point of access for people needing help with rental deposits and rent in advance. It is intended to supercede the Offenders Deposit Assistance Scheme (ODAS), established around ten years ago to help ex-offenders secure accommodation, and will replace the existing case-by-case arrangement through ESS.

To qualify, applicants must have been permanent residents of Guernsey for at least 12 months, be eligible to live and work in the island, and demonstrate that they can afford the rent and to repay the loan. This includes taking account of any financial support received through ESS benefits. The scheme is designed to be flexible enough to accommodate a wide range of applicants.

Once approved, the deposit and any rent in advance will be paid directly to the landlord, with a repayment schedule agreed with the applicant. GCS aims to make decisions within 48 hours, recognising that speed can be crucial in securing a rental property.

Charlie Cox, Chief executive of At Home in Guernsey, welcomed the initiative:

‘Helping people overcome that initial barrier of finding the money needed for a deposit and rent in advance can be the difference between being able to secure a home and remaining stuck without one. We’re really pleased to see this practical partnership approach developing and hope the scheme will help more islanders access the safe, stable accommodation they need.’

John Robinson, Chair for the Offenders Deposit Assistance Scheme (ODAS), said:

‘We are delighted to welcome GCS’s new Rental deposit scheme launched with the support of ESS. We are particularly pleased that ex-offenders are included among those eligible for these loans, and on terms very similar to those available through ODAS.’

GCS has worked closely with Jeff Guilbert, Chair of the Landlords Association, who has provided valuable feedback on the scheme’s landlord agreement and offered to publicise the scheme to the association’s members.

Joe Brown, Chief executive of Guernsey Community Savings, said:

‘The initial funding for the scheme will come from ESS, and we are also looking to secure additional funding to give it a strong start and accommodate all applicants. As loans are repaid, the money will be recycled to help other islanders, allowing the scheme to support more people over time.

‘We are hugely grateful to ESS for its valuable support, and to At Home in Guernsey, Action for Children, ODAS and the Landlords Association for helping us develop a scheme that we hope will make a practical difference to people who have been financially excluded from finding a home.’