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18/04/2011

Council’s Private Sector Leasing Scheme Proving Popular

A new leasing initiative, launched last week by Aberdeen City Council, to help tackle homelessness in the city is already proving popular with private landlords.

The private sector leasing scheme will see the council lease properties from private sector landlords and then sub-let them to homeless households in Aberdeen.

It's the council's intention to take on around 100 properties in the first year of this scheme and so far there have been 15 positive inquiries by private landlords, some of whom own more than one property.

Homelessness can affect anyone; some people are escaping violence in the home or are living temporarily with friends or family and, there are those who are living somewhere that is deemed insecure or unsafe.

The council has a statutory duty to provide accommodation to those who find themselves unintentionally without a home however; due to a social housing shortage the council is often left with no alternative but to offer bed and breakfast accommodation that lacks appropriate facilities.

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The council will enter into a partnership with private landlords to lease mainly one or two bedroom properties of a suitable standard for a contracted period. The properties will then be sub-let by the council on short-term and medium-term tenancies to housing service clients that are unintentionally homeless.

There is also scope to meet demand in areas where access to social housing stock is limited or does not exist and provide interim housing options to non-statutory homeless households.

In return for a negotiated reduction on the market rental value of their property landlords in the PSL scheme will receive a package of benefits including:

* guaranteed rental income;

* rent paid to landlords quarterly in advance;

* free tenancy management;

* not having to deal directly with tenants;

* no letting agents fees;

* no advertising costs;

* no reference checks;

* no loss of rent due to void periods;

* properties leased for 3 – 5 years;

* property returned in same condition as received (less fair wear and tear);

* free inventory;

* emergency repairs service available where required.

Aberdeen City Council's convener of Housing and Environment Committee Councillor Aileen Malone said: "This initiative is a major step forward in dealing with homelessness in the city, which can affect people from all walks of life. It is therefore essential that we as a council consider different ways of dealing with homelessness so we can deliver a service that benefits those in need."

Head of Housing and Community Safety Donald Urquhart added: "We're delighted that a number of private landlords have already expressed an interest in working with the council on this major new initiative.

"We are confident that more landlords will talk to us and participate in this scheme."

Aberdeen City Council will be responsible for the selection of occupants for all properties within the scheme.

(GK)

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