Landlord loan scheme details announced

05/05/2020 16:22:53

The Scottish Government announced support for landlords whose tenants are having difficulty paying rent during the COVID-19 crisis. Eligible private rented sector (PRS) landlords can use The PRS Landlord COVID-19 Loan Scheme to get 100 per cent of lost rental income for a single property with the application website opening from today, 5 May.

The interest free loan is available for PRS landlords who:

• were, or had applied to become, registered before 01 February 2020;
• are not classified as businesses;
• have 5 or less properties available for rent in Scotland that are classed as being within the private rented sector (as per the terms of the 2006 Housing Act)
• have lost rental income as a result of tenants facing difficulty in paying rent as a result of the Covid-19 situation or where a rental property became vacant on or after 01 February 2020 and the landlord is unable to get a new tenant because of the restrictions currently in place.

The loan scheme will cover lost rental income for a single property although landlords will be able to indicate if they are losing rental income from more than one property. This will help us to understand the level of impact and consider whether there is a need for additional support where multiple tenants are unable to pay their rent.

Landlords will be able to apply for a loan to cover lost rental income for a period of up to 6 months, backdated to the 01 March 2020. An initial payment of half of the agreed amount will be available and landlords will be asked to verify the continued loss of income before the second instalment is paid.

Loan repayments will be deferred until October 2020, with the loan being repaid in 12 monthly instalments. This will be kept under review as the Covid-19 outbreak progresses. The loan can be fully repaid at any point and requests for extension of the payback period will be considered on a case by case basis.

The application process is open and you can now apply using this link. Please note that you must scroll to the bottom of the page and click "Continue" to start the process.