Tenant Saver Loan Scheme introduced in Wales
12th August 2020
The Welsh Government has announced that there will be a loan available to the Private Rented Sector (PRS) following a campaign our Director, Douglas Haig was involved in as part of the National Residential Landlords Association (NRLA). The loans are available to help tenants pay off any rent arrears accrued during Covid-19, with the money being paid directly to the landlord or agent.
The loan will have an interest rate of 1% APR to be paid back over 5 years and should be available to claim from September. As we still wait for further information from the Welsh Government, there is currently no cap set on the amount a tenant can borrow and tenants can claim arrears which can be backdated to 1st March 2020.
The loans have been made available to those tenants who have suffered from arrears linking directly to Covid-19, examples would include those who are being made redundant, however, loans can also be available for potential non-Covid-19 related arrears were not substantial. At present, it also appears that loans could be used to cover future rent payments, however, the tenant is only able to apply once.
This loan is for the PRS sector only, and therefore if there is a tenant already claiming benefits, the advice is to go to their local authority for other financial aid.
How does it work?
We understand tenants would apply for the loan and would need to provide evidence that they can afford the loan repayments. Once this is approved the funds are transferred directly to the landlord or agent. This means that landlords can receive outstanding rent, via this grant.
The scheme is being run by Wales Council for Voluntary Action (WCVA).
What we will do.
We will be speaking with tenants who are experiencing financial difficulties to advise them of this loan which is available to them and at the same time we will be working with both tenants and landlords to assist with applications. We will be in touch individually with further details if this is something that may benefit you as either a tenant or a landlord.
For the latest government advice, please see below:
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