Welsh Government launches Tenancy Saver Loan scheme to provide low-interest loans to tenants struggling with rent arrears due to coronavirus

New scheme will be available until 31 March 2021 to private sector tenants in, or at imminent risk of, rent arrears

The Welsh Government has launched a Tenancy Saver Loan scheme to provide low-interest loans to tenants who are struggling with rent arrears due to coronavirus.

To further recognise the pressures that COVID-19 is putting on tenants in Wales, and building on steps already taken to alleviate this pressure - that include the extension of the temporary six-month notice period for eviction - the new loan scheme is targeted at private tenants who are in, or at imminent risk of, rent arrears.

Providing further details of the scheme, the Welsh Government advises that -

• it will be managed by Wales Council for Voluntary Action, with loans provided by seven credit unions across Wales;
• monies will be paid directly to landlords or agents;
• the loan amount will be repayable over a period of up to five years at a one per cent APR;
• once a tenant has applied for a loan, after the credit union has assessed if they are eligible and what  they can afford, tenants will be able to access ongoing  support and advice services to help them manage their financial situation; and
• the scheme will remain open until 31 March 2021.

Announcing the loan scheme today, 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, such as extending the temporary six month notice period for eviction and funding Citizens Advice Cymru to deliver the Early Alert Scheme for rent arrears and other household debt for tenants, we want to go one step further. That’s why we’re supporting a low interest loan scheme that provides financial assistance for both tenants and their landlords.

The Tenancy Saver Loan Scheme will directly support tenants who are struggling with their rent due to coronavirus to stay in their homes, address their debt and avoid eviction, whilst ensuring landlords receive the rent they are owed.

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.’

For more information, see Scheme to help tenants affected by coronavirus launches in Wales from gov.wales