Landlords in Wales whose tenants have been unable to pay their rent due to the coronavirus will be heaving a sigh of relief today as the Welsh Government launches its ‘Tenancy Saver Loans’.
This is a special scheme to help tenants who have got into difficulties and will. be paid directly to landlords or their agents.
Claire Savage, policy officer for Credit Unions, said:
Seven credit unions will be providing the Tenancy Saver Loans across Wales, working with Welsh government and the WCVA to provide a financial lifeline to those who have fallen into rent arrears due to the Covid-19 pandemic and are not able to get other forms of support.
The loans are offered at a very low interest rate of just 1% APR and will be subject to the usual affordability checks to ensure that we are helping private sector tenants keep their homes while not building up unsustainable debt.
It seems that at the moment there is no cap on the amount that can be borrowed and tenants will be given up to five years to repay the loan at 1% APR.
Applications will stay open until 31 March 2021. Note however that the loans will not be available to those who had substantial arrears of more than two months’ rent before 1 March 2020.
Calls are being made for a similar loan scheme to be set up in England where it is estimated that landlords may have collectively lost up to £437m in lost rental income as a result of Covid-19.