The Co-operative Group signs up to loan scheme for private renters
The Co-operative Group has become the first major employer to take part in a scheme offering workers an interest free loan to pay for their deposit on a rented home.
Established last year in London by housing and homelessness charity Shelter and the Mayor of London Boris Johnson, the scheme is now being rolled out across the rest of the country.
At an event to mark the start of the roll out, it was announced that The Co-operative Group will be the first major employer to offer the benefit to its 70,000-plus employees across the UK. The initiative has already been adopted by The Department for Communities and Local Government and is also being taken up by The Confederation of British Industry, London First and the London Chamber of Commerce.
As housing costs put pressure on renters’ finances, the Mayor and Shelter are now calling on employers throughout the UK to adopt the scheme.
Johnson said: “Many people living in private rented accommodation are forced to borrow money to pay for their tenancy deposit and are put in debt before they have even moved into their new home. By rolling out this scheme nationally we will be able to ensure that employees can secure a home without enduring unnecessary financial difficulty. This is the latest part of my comprehensive strategy for the private rented sector and follows on from the London Rental Standard which was launched last year to help millions of Londoners rent with confidence.”
The scheme offers employees interest-free loans to pay their deposits when they move into a privately rented home which are then paid back through their salary over the course of up to a year.
The Co-operative Group chief executive Richard Pennycook said: “For colleagues looking to rent their own home, raising the money for a deposit can be a real stretch. We are delighted to offer this helping hand to our colleagues and fully support this initiative.”
The roll-out event was held at The Co-operative Food store London’s St. Pauls and was attended by Housing Minister Brandon Lewis, Deputy Mayor of London for housing Richard Blakeway, The Co-operative Group Director of Resourcing and Diversity, Adrian Shooter, and Shelter chief executive Campbell Robb.
