Landlords interest-free loan scheme
The Scottish Government recently announced a new landlords interest free loan scheme. The Private Rented Sector Landlord COVID-19 Loan Scheme is supporting landlords whose tenants can’t pay rent due to Covid19. This interest-free loan is designed to cover lost rental income during the coronavirus pandemic. It is thought the Scottish government has invested over £5m in the scheme. They hope it will ensure no one loses their home during this unprecedented public health pandemic. In addition to this they also passed a legislation to protect tenants against any eviction action for six months. So, it seems Scotland are putting a huge focus on the rental sector, but will England follow suit?
Come on England
This bold move has put pressure on the rest of the UK to implement similar measures. It is thought providing a scheme such as this would ensure landlords mortgage payments are kept up to date. Landlords can apply for a loan to cover lost rental income for a period of up to six months, backdated to March 1st 2020.
However, the scheme does have stringent stipulations such as:
- It is only available to landlords registered before February 2020
- Landlords must not be classified as a business
- Applicants must try to come to payment arrangements with tenants first
- Landlords must have fewer than five properties for rent in Scotland
- Landlords must have tried applying for a mortgage deferral before application
Interest free loan scheme details
Once agreed there is 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 also be deferred until October 2020, with the loan being repaid in 12 monthly instalments.
This new scheme has been a welcomed relief to landlords in Scotland, now landlords are eagerly waiting to see if the rest of the UK will follow suit.
Take a look at our current property list here.