Council funds rent guarantor cover for private tenants

Northumberland County Council is paying for guarantor insurance to help tenants secure homes in the private rented sector.

The scheme targets potential tenants who can afford a tenancy but cannot provide a qualifying relative or other person to be their guarantor.

Instead, the council will fully fund guarantor insurance for applicants who meet the scheme’s requirements.

If an approved tenant defaults on their rent, the policy will guarantee payments directly to the landlord.

Guarantor barrier removed

Councillor Colin Horncastle, the council’s cabinet member with responsibility for housing, said: “We know that people across Northumberland are finding it difficult to secure rental accommodation simply because they do not have someone to stand as a guarantor.

“By funding this guarantor insurance directly, the council is removing this barrier, supporting our residents in need, and giving local landlords the financial peace of mind they need to accommodate local tenants.”

Applicants will be assessed according to their individual circumstances and their ability to maintain a tenancy.

Once someone is approved, the council-backed insurance policy is activated to provide the rent guarantee.

Council landlord support

Properties used under the initiative will also have to meet specified safety standards.

The council says the arrangement should give landlords additional financial security when housing residents who would otherwise struggle to satisfy guarantor requirements.

The initiative forms part of Northumberland County Council’s Property and Landlord Accreditation scheme, known as PLAN.

The free scheme gives landlords a single point of contact within the council’s private sector housing team.

Landlords can obtain advice on new housing legislation, industry issues, safeguarding and maintaining tenancies.

The council is inviting Northumberland landlords interested in the scheme and residents needing guarantor support to come forward.