Home / Help & Advice / / Call for employers to offer staff tax-free loans for tenants’ deposits

Call for employers to offer staff tax-free loans for tenants’ deposits

London mayor Boris Johnson has backed a Shelter proposal that employers should be able to offer tax-free loans to staff to help with rental deposits.

call for employers to offer staff tax free loans for tenants deposits

London mayor Boris Johnson has backed a Shelter proposal that employers should be able to offer tax-free loans to staff to help with rental deposits.  Johnson issued his own call at the Conservative party conference, after his housing team met with Shelter representatives to discuss the idea.

Shelter said that Johnson is right to back the initiative, saying that the average deposit is now £979 nationally, and a lot more in London.

A Shelter survey of private tenants in 2012 found that 19% borrowed money to pay their tenancy deposit, with some using payday loans.

Shelter says there is a clear opportunity for employers to provide an alternative, safe source of tenancy deposit funding as a benefit to their staff. It points out that many employers already offer their staff tax-free loans for travel season tickets.

Shelter is putting its money where its mouth is, and is to start offering its own staff interest-free loans of up two months’ salary in order to fund their deposits.

Once their deposit is paid and the rented home secured, borrowers will repay the loan via monthly pay packet deductions.

Source: Letting Agent Today

Image Source

Disclaimer: This article is provided as a guide. Any information should be used for research purposes and not as the base for taking legal action. The Tenants' Voice does not provide legal advice and our content does not constitute a client-solicitor relationship.

We advise all tenants to act respectfully with their landlords and letting agents and seek a peaceful resolution to problems with their rented property. For more information, explore the articles in our category.

The Tenants' Voice works in conjunction with Deposit Recovery Claims to assist tenants.

If you experience problems with your tenancy deposit, have disrepair in your rented property or suspect that your landlord should have a licence to rent your property but does not have one then you can receive a free consultation by calling our advice service: Call Tenant Assist on 0333 344 3788.

For more ways to reach us, please visit our contacts page.