§ Lord Hyltonasked Her Majesty's Government:
What enactment confers power on local authorities to provide rent guarantees; what steps they have taken to publicise this power; and what is their information about the extent of use of this power.
The Minister of State, Department of the Environment (Earl Ferrers)Local housing authorities in England, Wales and Scotland may provide rent guarantees using the powers conferred on them by Section 24 of the Local Government Act 1988, subject to the consent of the Secretary of State. No such powers exist in Northern Ireland.
31WAA general consent was issued in March 1995 to local authorities in England to pay rent deposits or give indemnities to private landlords for up to eight weeks' rent per tenancy to meet losses arising from the grant of the tenancy. In the letter accompanying the general consent, authorities were urged to consider rent guarantees as a means of opening up access to the private rented sector for people in housing need who do not have the resources to provide rent in advance. Guidance for local authorities on the preparation of housing strategies issued in April 1995 draws attention to the benefits of such schemes.
Over 120 local housing authorities in England—over one-third of the total—provide some form of rent deposit or guarantee scheme. The power is seldom used in Wales and Scotland.