Wansbeck District Council have agreed to set aside £3,000 for the first six months of the scheme run by national charity Centrepoint.
Subscribe to News Post Leader - Latest News by e-mail
The Rent Deposit Scheme is open to young people on a low income, aged 16 to 25, to help them access privately rented housing even if they cannot afford to pay a deposit of their own.
In place of a cash deposit, Centrepoint arranges a formal rent deposit guarantee agreement to cover the landlord for rent arrears and damage, with the first £150 paid by the council.
Coun Dave Ledger said: "If you think about the work Centrepoint has done in London you can see how much they have been doing for homeless people and they have also done work in Blyth.
"There are people who have to flee home from domestic violence and abuse but they don't have the funds to pay for a bond."
To qualify the applicant needs to be homeless or be threatened with homelessness and have limited options.
If they pass the application process the tenant will be encouraged to save a small amount each week for their next deposit for when they wish to move on.
Initially ten supported tenancies will be provided within Wansbeck, selected from an estimated 100 referrals.
The full article contains 250 words and appears in News Post Leader newspaper.