Tag: Tenant Hardship Loan Fund

Rental sector loan schemes extended

Tenants and private sector landlords facing financial difficulties caused by the pandemic have more time to access support after two loan schemes were extended.

The Tenant Hardship Loan Fund and the Private Rent Sector Landlord (non-business) COVID-19 Loan Scheme, both of which offer interest-free loans, will continue to receive applications beyond the original deadline of 31 March 2021.

It comes after Housing Minister Kevin Stewart extended temporary regulations banning the enforcement of eviction orders in the private and social rented sectors, giving further safeguards to tenants during the Coronavirus (COVID-19) crisis.

Mr Stewart said: “Throughout this pandemic our focus has been on enabling people to stay safe in their homes while the lockdown restrictions needed to suppress the virus are in place.

“These loan schemes have provided vital support as part of our broader effort to help those facing financial hardship as a result of COVID-19. For the majority of tenants facing financial difficulties and arrears the best means of support continues to be regular non-repayable support, for example through Universal Credit and Discretionary Housing Payments.

“However, for those who may fall through the gap and are unable to claim such support, these funds offer a helping hand to manage any rent issues that have arisen in the last few months as a result of COVID-19.

“We have been clear that no landlord should evict a tenant because they have suffered financial hardship due to the pandemic and that tenants in difficulty should engage with their landlord and seek advice on the options open to them.”

Applications for the Tenant Hardship Loan Fund and the Private Rent Sector Landlord (non-business) COVID-19 Loan Scheme can be completed online. 

Increased support for tenants struggling with rent arrears

A £10 million fund which offers interest-free loans to tenants who are struggling with rent arrears opens for applications today.

The Tenant Hardship Loan Fund is designed to help people who have had their finances or employment impacted by the coronavirus (COVID-19) pandemic and do not have other means of housing support.

The new fund is part of a range of support and interventions in response to the pandemic. By giving tenants access to loans to cover a maximum of nine months worth of rent arrears and long repayment terms, it provides another option for people who have lost out financially due to the pandemic, but who can’t claim support from other means, such as welfare benefits.

Housing Minister Kevin Stewart said: “There is no single solution to the difficulties being experienced as a result of the impacts of the pandemic in Scotland, and the Tenant Hardship Loan Fund is a part of a broader effort to support those who are affected.

“We want people to access the most appropriate form of financial support. For the majority of tenants facing financial difficulties and arrears the best means of support is regular non-repayable support, for example through Universal Credit and Discretionary Housing Payments.

“However, for those who may fall through the gap and are unable to claim such support, or who might be thinking of borrowing, this new Fund will be a helping hand to manage any rent issues that have arisen in the last few months as a result of the impact of COVID-19.”

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

More support for tenants

New measures to help with housing costs during the pandemic

Emergency legislation extended to ensure no evictions until March 2021

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A new £10 million fund will be part of a package to support people struggling to pay their rent due to financial difficulty associated with the COVID-19 pandemic.

The Tenant Hardship Loan Fund will open later in the Autumn and offer interest-free loans to those unable to access other forms of support for their housing costs.

The Discretionary Housing Payment (DHP) fund which helps tenants in receipt of benefits will increase by £3 million, bringing the total to £19 million. This is in addition to the £60 million DHP budget already being used to fully mitigate the bedroom tax.

Emergency legislation put in place to protect private and social tenants from eviction during the coronavirus pandemic will be extended by six months, pending approval from the Scottish Parliament.

Ministers will also introduce new regulations to allow for the notice period for eviction for anti-social or criminal behaviour to return to one month to protect other neighbours.

Housing Minister Kevin Stewart said: “Tackling inequality and supporting people is a central theme of this year’s Programme for Government and this package of support for tenants is part of that.

“We already know that the pandemic has hit the lowest earners hardest and the Scottish Government has already put in place a range of actions in place to support tenants.

“This new £10 million fund, along with a further increase in our Discretionary Housing Payment funds, will mean that no one should be left in a position where they cannot access support to pay their rent. The intention is that this fund will open in November for those unable to access other forms of support to help meet their housing costs.

“We have been clear that no landlord should evict a tenant because they have suffered financial hardship due to the pandemic.

I fully expect landlords to be flexible with anyone facing such challenges, signposting them to the sources of financial support available, and tenants in difficulty should engage with their landlord and seek advice on the options open to them.

“I can confirm today that emergency legislation will be extended to ensure no evictions can take place until March 2021. However, since the initial legislation was introduced we have listened carefully to tenants and housing authorities concerned that a three month notice period is too long where tenants have behaved in an anti-social or criminal way. We are therefore reverting back to a one month period for repossession for such cases to ensure we can protect other tenants, neighbours and landlords who should not have to tolerate such behaviour.”

The Coronavirus (Scotland) Act ensures evictions cannot take place before end of September and this will now be extended for a further six months to March 2021.

The Tenant Hardship Loan Fund will open later in the autumn and further details of how to apply will be announced in due course.