A NEW £8million scheme to help tenants struggling with rent arrears due to coronavirus launched today.
The Tenancy Saver Loan scheme, which is the first of its kind in the UK, will be open to private rented sector tenants in rent arrears and those who may also struggle to pay future months’ rent as a result of coronavirus; it will be open until March 31 2021.
Paid directly to landlords or agents, the scheme will offer one per cent APR loans to be repaid over a period of up to five years and will provide an affordable way to cover rent arrears, or future months’ rent, reducing the risk of eviction and homelessness.
Once a tenant has applied for the loan they will be able to access support and advice services to help them manage their financial situation.
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Managed by Wales Council for Voluntary Action, the loans will be provided by seven Credit Unions across Wales.
The Credit Unions will work with tenants to find out whether they’re eligible for the loan scheme and how much they could afford to repay. If the scheme is suitable, the Credit Unions will provide them with support for the duration of the loan repayment term.
Minister for Housing and Local Government, Julie James said: “We recognise the constant pressure that the coronavirus is putting on tenants and landlords.
"While we have already taken steps to alleviate some of this pressure we want to go one step further, which is why we’re supporting a low interest loan scheme that provides financial assistance for tenants and their landlords.
"We are committed to ensuring no-one is made homeless as a result of the pandemic and this scheme is part of our long term strategy to help people manage their debt, prevent homelessness and - where it cannot be prevented - ensure it is rare, brief and non-recurrent.”
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