Innovative lettings ‘Passport’ enables councils to house more and save more
Local Authorities and Housing Associations across the UK can now access a brand new solution to help many more low income renters find new homes and save public funds, through The Ark Passport.
Did you know that UK councils have spent £3.5 billion on temporary housing over the last 5 years?
With the introduction of Universal Credit and the uncertainty around direct payments, social housing providers are now having to reconsider their business models. In the current climate councils are having to supply a bond as security to house benefit assisted tenants in the private rented sector, so local community budgets are inevitably being stretched to capacity. For example, based on a budget of £200,000 this would only allow a local authority to house 200 families. However the new Ark package allows local authorities and housing associations to over double the amount of applicants they can house for just £350 a time, and if they’re sharing a property the second tenant only pays £100.
It has been devised by an experienced team of property investors and insurers who wanted to find a pro-active way in giving landlords security against such issues. It also gives renters the opportunity of acquiring a passport to help secure decent accommodation, overcome the need to find prohibitive deposits and rent in advance as well as enabling tenants to build their credit rating and reference history.
The Ark Passport combines these three elements to provide the key to finding a better home:
- A tenant referencing product for low income tenants who are in receipt of any type of benefits.
- A tenant friendly, managed account with a national clearing bank.
- A rent guarantee and legal expenses insurance policy that also accepts that applicants may have CCJ’s.
Whether you are a social or private landlord, protecting your rental income is paramount. The risk of non-payment can be managed in a number of ways, and The Ark allows landlords to manage this risk accordingly:
- Avoidance – through credit checking and landlord referencing
- Reduction – by gaining as much information as possible about a prospective tenant
- Prevention – by utilising the information available and tailoring e.g. using a managed account
- Acceptance – by knowing as much as possible about your tenant
- Transference – by having the reassurance of an insurance policy against rent default
The ARK provides the products for those organisations that want to become more commercially orientated to:
- Help sustain tenancies
- Reduce failed tenancies and the associated costs
- Reduce rent arrears
- Reduce property damage and anti‐social behaviour
- (In some cases) replace costly deposits and rent in advance enabling those that do not have these levels of financial resources to secure accommodation