Wednesday, 6 May, 2020
The Scottish Government is providing interest-free loans to private landlords whose tenants are having difficulty paying rent during the coronavirus crisis.
The Private Rent Sector Landlord COVID-19 Loan Scheme will offer up to 100% of lost rental income to landlords who are experiencing interruption to their normal monthly rental payments. It will support those who are not classified as businesses, have five or fewer properties and have lost income due to tenants being unable to pay their rent as a result of the coronavirus (COVID-19) pandemic.
This £5 million interest-free loan scheme is designed to take the pressure off landlords in the short-term, however, landlords are still encouraged to engage with their tenants and this loan is intended to support them in doing so.
Loans will cover lost rental income for a period of up to six months, backdated to 1 March 2020. Loan repayments will be deferred until October 2020, with the loan being repaid in 12 monthly instalments. This will be kept under review as the COVID-19 outbreak progresses.
The loans will cover lost rental income for a single property, although landlords will be able to indicate if they are losing rental income from more than one property. This will help the Scottish Government to understand the level of impact and consider whether there is a need for additional support where multiple tenants are unable to pay their rent.
Housing Minister Kevin Stewart said:
'We want to ensure no one loses their home during this unprecedented public health pandemic which is why we passed legislation to protect tenants against any eviction action for six months.
'This new £5 million loan fund builds on that action and offers landlords the same security as tenants, ensuring they have financial support if tenants struggle to pay rent because of coronavirus.'
Applications may be submitted now, via an online form available at the Scottish Government's website.
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