The Welsh Government has today announced the introduction of their new “Tenant Saver Loan Scheme” (TSLS). Tenant Saver Loan Scheme will be made available from early September and is intended to support those most affected by the Covid-19.
Tenant Saver Loan Scheme is designed to help private tenants who are experiencing rent arrears during the pandemic as a direct result of COVID-19. There is no cap set on the amount a tenant can borrow from the TSLS.
The Welsh Government is currently concluding the fine details of the Tenant Saver Loan Scheme which will be available on the Welsh Government website soon.
We understand applicants upon completing the form will be required to furnish evidence that they can afford to re-pay the loan. Once the Tenant Saver Loan Scheme is approved, the loan money will be transferred directly to either the landlord or the letting agent.
The loans are being offered at a favourable APR of only 1% over a term of up to five years.
The scheme will be administered by Wales Council for Voluntary Action.
Whilst tenants cannot be forced to apply for the support, the Welsh Government expects one-off applications to be made subject to later developments concerning the spread of the virus, the impact on employment, and the existing furlough scheme.
A Welsh Government press release said that the new Tenant Saver Loan Scheme is intended to provide an affordable way to cover rent arrears, or future months’ rent, reducing the risk of eviction and homelessness for Welsh tenants.
The loans will be paid directly to landlords and are available for tenants who were not insignificant rent arrears prior to 1 March 2020.
Author: Amanda Goldsmith
Date: 11th of August 2020