Co-op offering staff interest-free rental deposit loans

The Co-operative group has launched a rental deposit loan scheme to help employees moving into rented property and struggling to raise cash for a deposit.

The scheme is in partnership with Shelter, the Greater London Authority & the Department of Communities & Local Government (DCLG).

Adrian Shooter, the Co-operative Group director of resourcing and diversity, said: “House hunting and moving home are stressful times, and if you’re renting, having to find a hefty deposit can be a big ask and pile on more pressure. At The Co-operative, we regularly look to find practical ways in which we can support our colleagues, outside of their normal pay and reward benefits. So, when Shelter approached us with this innovative way to provide real assistance for people struggling to find these deposits by offering interest-free loans, we were delighted to get involved.

“With more than 70,000 employees across the country, a large number of our colleagues are likely to rent houses from private landlords and this new scheme will be invaluable for them. According to research by My Deposits, renters in England pay an average of £1,200 for deposits when they move into privately rented homes. For the vast majority of people, this kind of money isn’t readily available at your fingertips.

“The number of people renting is increasing rapidly, and we want to make sure we’re responding to our colleagues’ needs as people’s lifestyles change.

“In terms of providing these interest-free loans, we’ve worked really hard to ensure we turn the application around within five days, and pay the money straight into the employee’s bank account. This means people can receive the cash quickly and easily, which is vital when there is intense competition for properties, as is often the case, and you need to act fast to secure your new home.

“As a responsible employer, we’ve taken the decision to enable employees to borrow a maximum of 80% of their four-weekly pay, as we think this is a sensible amount for people to then pay back in equal payments across the year. The scheme is open to all colleagues who have completed their probationary period, and who aren’t leaving during the loan period.”