Loans to pay off rent arrears built during the COVID-19 pandemic will now be available to tenants in Wales following a campaign by the National Residential Landlords Association (NRLA).
The NRLA has been lobbying the Welsh Government to provide more support for landlords and tenants affected by the crisis, with a loan system one of its key asks.
Following the announcement of the new Tenancy Saver Loans, Ben Beadle, chief executive at the NRLA, said: “We are delighted the Welsh Government has listened to what we had to say and consequently adopted our proposals for a tenant loan scheme.
“These loans will help keep tenants who have been affected by coronavirus in their homes, while supporting landlords reliant on rental income to pay their own bills.
“We would advise every landlord with a tenant in arrears to make sure they are aware of the new scheme and advise any landlord in receipt of these payments to commit to working with their tenant to maintain the tenancy in the long term.”
The scheme will apply to the Private Rented Sector only, and will allow tenants to borrow money to cover the arrears they have built, with the money then paid directly to the landlord or agent.
The Government hopes the scheme will be operational from September. As yet, there is no cap on the amount that can be borrowed and the tenant will be given up to five years to repay the loan.
This post has originally been featured in Property Wire.