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Tenant hardship loan fund opens north of the border

A tenant hardship loan fund is to open next week in Scotland - and many rental bodies in England and Wales want something similar.

Applications for the £10m fund are allowed from next Monday although its online portal has already opened.

The fund will offer loans to tenants in both the private rented and social sectors who have difficulties meeting their rent each week or month.


However it is available only to clear arrears accrued since January 1 this year and/or are being used to pay a maximum of three future months’ rent payments. Only a maximum of nine months rent can be applied for.

Applicants must agree to an affordability and credit check before being offered a loan as well as confirming they had no arrears prior to January.

The Energy Savings Trust, which is administering the scheme for the Scottish Government, is charged with ensuring the loan is used to pay registered landlords. 

Repayments must be made in six monthly instalments or in one go, but payments are currently deferred for six months anyway.



Advice from ARLA Propertymark says: “With the Pre-Action Requirements for rent arrears having recently been introduced - which requires agents and landlords to signpost the availability of financial support to tenants, and evidence they have done so before the Tribunal will issue a possession order - both agents and landlords should keep in mind the availability of the loan and ensure tenants are informed of any potential financial support.”

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    There should be a loan scheme for tenants to pay their rent at present, it is irreverent whether a tenant , won't pay or cannot pay both are going to earn themselves a big black mark on their credit history that will follow them around for at least the next 6 yrs.

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    • 03 December 2020 08:37 AM

    Hopefully even longer!!!!

  • PossessionFriendUK PossessionFriend

    So Wales was First to have a Loan scheme ( albeit with some flaws ) and now Scotland.
    Meanwhile MHCLG's head is buried firmly in the sand.

    The flaw with Wales' scheme ( and likely Scotland, - because this is geared towards tenants with no thought for landlords ) is that the loan provision is " Optional " and if the tenant doesn't avail themselves of it, there is no provision for an Expedited Possession claim by the landlord.

    Those crafty tenants will sit back, not burden themselves with a loan in the knowledge that the Govt keeps suspending the legal rights of landlords to gain Grossly justified Possession. !


    I agree. Landlords should be able to apply for loans in their tenants' names to avoid eviction but it's never going to happen!


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