An MP who intends to claim for rental costs may apply to IPSA for a loan to cover any deposit payable at the commencement of a tenancy. This loan will not be deducted from the accommodation costs budget. [4.23]
This loan cannot exceed the lower of:
the deposit which is stated in the rental agreement
one-quarter of the relevant annual accommodation costs budget (for example, London Area or the constituency) [4.24]
Applications for loans must be submitted by the MP and accompanied by a rental agreement for IPSA to approve.
IPSA will pay the loan to the MP, who will forward the deposit to the landlord.
IPSA may consider a deposit loan application that is accompanied by a draft rental agreement – in these circumstances, a fully signed agreement must be submitted to IPSA within one month of the start of the tenancy.
If this condition is not met, IPSA may recover the deposit loan and any rent already paid under the draft agreement from the MP. [4.25]
You can apply by Completing a Property Registration Form.
MPs may not hold more than one loan for a deposit on rental accommodation at any one time, except where IPSA agrees otherwise. [4.26]
The MP is responsible for securing the return of the deposit and for repaying the amount in full to IPSA, no later than one month after the date on which the tenancy comes to an end, or, where the MP leaves Parliament, the end of the winding-up period (whichever is earlier).
Any shortfall between the deposit paid and the amount returned shall be the sole responsibility of the MP. [4.27]
Loans for holding deposits
MPs may also apply for a loan for a holding deposit before the start of the tenancy.
Holding deposit loans must be repaid to IPSA within 30 days of signing the tenancy agreement or refund of the holding deposit, whichever is earlier.
IPSA may also agree to recover the amount via alternative means. [4.28]
Download the IPSA Repayment Form.