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Graham Awards


Arrears: Loans for tenants with debts because of Covid

The Welsh Government has launched a new Tenancy Saver Loans scheme to allow tenants to borrow to pay off arrears built up during the Coronavirus crisis.

The loan payment will be made directly to the agent or landlord and the scheme is likely to be active from next month.

The tenant will have to apply for the loan: they will then be given up to five years to pay back the money at an interest rate of one per cent APR.


The National Residential Landlords Association, which has been pressing for help of this kind for tenants in Wales, says it understands there is no cap on the amount a tenant can borrow and arrears payments can be backdated to March 1 this year.

NRLA chief executive Ben Beadle says: “We would advise every landlord with a tenant in arrears to make sure they are aware of the new scheme and advise any landlord in receipt of these payments to commit to working with their tenant to maintain the tenancy in the long term.”

The NRLA advises that if a tenant is already on benefits, they should go to their local authority and apply for Discretionary Housing Payments rather than apply for the loan.

The scheme will be administered by Welsh Council for Voluntary Action – an umbrella body for charities in the country – and delivered by credit unions.

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    I like that it is paid directly to the landlord or agent. Will Shelter. GR etc like that caveat?

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    • 12 August 2020 12:21 PM

    Tenants won't bother with these loans.
    They know they can easily avoid ever paying anything to the LL.

    LL suffer about £9 billion of losses every year mostly caused by rent defaulting tenants.

    Simply can't see tenants taking out loans to pay rent arrears when they can get away with not paying anything!


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