Scottish Government Announce Aid for Private Landlords
The Scottish Government have established a £5 million fund which will offer interest-free loans to landlords whose tenants are having difficulty paying rent during the coronavirus (COVID-19) crisis. The scheme opened for applications on 5 May 2020.
The Private Rent Sector Landlord COVID-19 Loan Scheme will offer eligible landlords up to 100% of lost rental income for a single property.
The purpose of the scheme is to support private-sector landlords who are not classified as businesses, have five or less properties to rent and have lost rental income due to tenants unable to pay rent as a result of the COVID-19 pandemic.
The Coronavirus (Scotland) Act 2020 protects tenants from any eviction action for six months. This legislation could result in landlords running into financial difficulties if their tenants are unable to pay rent during this period. The new loan facility could therefore provide a welcome cash flow boost for struggling landlords.
The application process requires landlords to confirm that they understand the terms of the Coronavirus Act 2020 in relation to eviction proceedings and have discussed rent issues with their tenant and reached agreement on managing arrears.
Landlords facing difficulties with repayments on a mortgage for a rental property are expected to seek a mortgage repayment holiday from their lender before they apply for a loan.
Further information on the scheme, along with the application process, can be found here: https://covidlandlordloan.est.org.uk/
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
Photo by Марьян Блан | @marjanblan on Unsplash
