A government-backed alternative has been launched in Guernsey to help tenants finance the upfront cost of finding a rental home.

Guernsey Community Savings (GCS) is launching a new interest-free rental deposit scheme which pays money to the landlord upfront and directly, rather than waiting for the tenant to save it. To qualify, tenants must have been permanent residents for at least 12 months, be eligible to live and work in the island, and demonstrate that they can afford the rent and to repay the loan.

Supported by an initial one-off grant of £50,000 from Employment & Social Security, the rental deposit scheme will provide loans, with no additional charges, to eligible applicants to cover rental deposits and - where required - rent in advance.

Once approved, the deposit and any rent in advance will be paid directly to the landlord, with a repayment schedule agreed with the tenant. GCS aims to make decisions within 48 hours.

Association

Guernsey Landlords Association helped develop the landlord agreement and is publicising the scheme to members.

Guernsey’s rental market is sufficiently constrained that its latest property-market figures still describe “a fundamental lack of stock”, despite more properties being let in the first half of 2026.

GCS chair James Ellis says with the ongoing shortage of social and affordable housing, the private rental market is the only realistic option for many islanders on low incomes. “Finding a deposit which costs £2,000 on average, often alongside a month’s rent in advance, can be an insurmountable barrier, even if you can afford the ongoing rent,” he adds.

Pressures

“Given the pressures on Guernsey’s housing market, this is likely to remain a critical issue for many years. We hope the scheme will make a real difference by helping more people secure a home.”

In the summer, Guernsey’s Committee for Housing decided not to progress a planned government-regulated private rental deposit scheme, instead hoping the housing industry could produce a workable solution.

However, the landlord association has warned that incoming reforms including basic requirements for private rentals, including the existence and contents of tenancy agreements, and specific grounds for possession and minimum notice periods, will push many older and experienced landlords towards the exit.

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