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Covid-19 crisis: New support for landlords whose tenants are struggling to pay rent

Landlords north of the border whose tenants are having difficulty paying rent during the coronavirus crisis can now apply for a Private Rented Sector Landlord Covid-19 Loan Scheme, the Scottish government has announced. 

The scheme, which opened yesterday for applications, allows all eligible landlords to get 100% of lost rental income for a single property.

The scheme will support landlords who are not classified as businesses, have five or fewer properties to rent, and have lost rental income due to tenants unable to pay rent because of the Covid-19 pandemic.


Housing minister Kevin Stewart said: “While all tenants should pay their rent if they can, we recognise the financial pressure people are facing. 

“The Scottish government encourages landlords to talk to their tenants about rent payment issues. We also expect landlords to be as flexible as possible with their tenants, discuss managing rental payments, and help them find sources of financial support and advice.”

The application process will require landlords to confirm they understand the terms of the Coronavirus (Scotland) Act 2020 in relation to eviction proceedings, and that they have discussed rent issues with their tenant and reached agreement on managing arrears.

John Blackwood, chief executive of the Scottish Association of Landlords, commented: “Collectively the housing sector needs an approach that protects all parts of housing in Scotland to guarantee we can provide the different types of quality housing we need. 

“We want to continue to work with the government, as well as other public bodies, trade bodies and charities to ensure to achieve that and hope there will be further steps taken soon.”

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    Interest free ??

  •  G romit

    The loans should be to the tenant but paid directly to the Landlord. The Govt can have the problem of get the loan repaid as Landlords have next to no chance of recovering arrears.

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    Available if you have 5 or fewer properties? Does that mean if you have 6 you don’t qualify for the loan,therefore shouldn’t qualify to pay taxes on the 6th either

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    Since the SNP abolished the right of Scottish Landlords and tenants to agree on a mutually suitable fixed term lease, landlords have been blighted by tenants upping and leaving on a whim at 28 days notice, with no right for the landlords to end the tenancy on a no fault basis. Many students simply left their flats in early March and many of these flats will stay empty until September or later if the snowflake University staff plead unsafe working conditions.

    This scheme does nothing for landlords who no longer have tenants and little for those who do but again the SNP manage to grab favourable but misleading headlines!

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    • 07 May 2020 04:53 AM

    Will such a loan be considered by HMRC as income for S24 purposes?
    One presumes that LL would be allowed to offset the loan against income if such a loan is meant to assist LL!?
    Potentially taking the loan could push the LL into being a HRT if HMRC DOESN'T allow the loan to be offset against income.
    That would have all sorts of negative effects.
    Why should a LL take a loan that under S24 could bankrupt the LL if he has no money to pay tax on fictitious income!?

    Why should a LL take out a loan to cover for rent that feckless tenants refuse to pay for whatever reason?
    Why should not tenants obtain the loan to then pay their rent?
    Nothing then to do with the fact that Govt knows feckless tenants won't repay any such loan.
    Maybe Govt is aware that feckless tenants cause LL over £9 billion in losses per year mostly caused by feckless tenant rent defaulting.
    Surely it should be for feckless tenants to ensure they have sufficient financial resilience in the event they suffer income shortages.
    I think such financial resilience is usually called SAVINGS.
    Of course there are also income protection policies that tenants could take out.

    Why does Govt consider it acceptable that LL should take out loans to to pay themselves the rent that the tenants should be paying!?

    Perhaps the supermarkets should take out loans to pay for the shopping that their customers do but don't pay for!!!!!!?????

    Yet again the ridiculously STUPID PTB are imposing policies on the PRS that simply beggar belief.

    Especially on mortgaged sole trader LL.
    It is simply ridiculous to expect any private LL to retain a rent defaulting tenant.
    GOVT knows that if it did not impose even more penal eviction processes many LL would have been evicting millions of tenants.

    It seems Govt believes that LL will do whatever it takes to remain a LL.
    A situation they will very sadly be disabused of as LL sell up!

    To imagine that LL will suffer thousands of pounds of losses is for the birds.

    There will be night visits by men in balaclavas carrying baseball bats evicting feckless rent defaulting tenants!!!
    Any tenant who believes they could get away with living rent free until being eventually evicted after a year or so will be sadly deluded!!

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    • 07 May 2020 11:20 AM

    So it is for LL to resource fecklesss tenants!?
    Surely it should be for tenants to apply for loans to pay their rent if they aren't receiving furloughed wages.

    Also how many tenants are being paid furlough wages and aren't paying the LL!?

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    My agency people initially in March advised that the 4 tenants sharing my house are OK to pay the rent, few days later the agent said that he had to pay more that what he got for emergency electricity repairs? Without telling me!!
    I asked for receipts, he never provided any, with a lot of pushing, he sent me an invoice from an electrician in London while my house is in Birmingham with no address or job dates on the invoice!! That was for April rent.
    Then for May rent, my agency advised that there is no rent for me. That's it and they are willing to break the contract with me after the evictions happens provided that I PAY the agency £7000 for other costs that they spent on my house initially?
    Obviously it is a robbery taking the advantage of the situation and especially as I'm locked in Egypt at the moment!
    Any advise whom to complain to!!
    I threatened of going to the court, the agent laughed at me! He is a solicitor!
    I'm a landlord of this house only, it is the house I normally live in with my family, but as I had to be away for a while so I gave it to the agent at a protected monthly rent, the agent was to trade it his way. This is the source of income for my family too!! Any advice, why not agency apply for this kind of loans or their tenants do! Why should I!!
    What if no one ever pays me back, will I be stuck with interests. Also agencies and tenants are partially compansated for their wages and have their savings too

    Daniela Provvedi

    Contact Paul Shamplina at Landlord Action on +44 333 321 9415. They will help you. It's not a free service.


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