The Tenant Hardship Loan Fund

The Scottish Government has announced a new £10m Tenant Hardship Loan Fund which will provide interest free loans to tenants who are struggling with their rent arrears, due to the current pandemic.  The fund opened for applications on 7 December 2020.

The aim is to help those who have had their finances or employment impacted by the coronavirus (COVID-19) pandemic and do not have other means of housing support.

Loans will:–

• be available for social and private tenants.
• cover a maximum of nine months’ rent, covering rent arrears and future rent, where those arrears have arisen since 1 January 2020. The loan will not be available where a tenant had prior rent arrears. The loan can include up to a maximum of three months of future rent payments as part of the nine-month total.
• have long repayment terms. Loan repayments will be deferred for six months as standard and repaid over a five-year period.

Loan offers will be subject to an affordability assessment.  This will look at the applicant’s incomings and outgoings to check whether the applicant has enough surplus income, after other costs, to make the loan payments.

Applications for the Tenant Hardship Loan Fund can be completed online.

https://tenanthardshiploan.est.org.uk/

https://www.gov.scot/news/increased-support-for-tenants/

The information in this blog provides only an overview of Scottish Government guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed Scottish Government 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.