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£10m arrears scheme launches to help Covid-hit renters

A new £10m scheme to help renters with Covid-related arrears has been launched in Wales. 

Called the Tenancy Hardship Grant, and introduced by the Welsh Government, it replaces the former Tenancy Saver Loan scheme.

The new scheme is aimed at tenants with rent arrears built up between March 1 last year and June 30 this year; the tenantshave to be already in receipt of benefit.

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Anyone who has a loan under the existing loan scheme will have it converted into a grant. 

Wales’ climate change minister - who is also responsible for housing - is Julie James and she says: “The scheme will support private rented sector tenants in Wales who are in significant rent arrears as a direct result of the pandemic. It is part of our ongoing commitment to prevent homelessness in Wales.

“The scheme is being delivered by local authorities. Tenants who are not in receipt of housing related benefits, and who have fallen behind on their payments by eight weeks or more as a consequence of the pandemic, between March 1 2020 and June 30 2021, will be eligible to apply for a grant”.

 

 

National Residential Landlords Association chief executive Ben Beadle calls the new scheme “a positive step for both landlords and tenants in Wales” and adds: "We welcome the news that the Welsh Government has listened to NRLA calls to introduce an improved scheme that will help more tenants pay their rent.

“It is essential that the grants are made as accessible for tenants as possible and implemented effectively. We encourage landlords who have tenants with arrears to make them aware of the scheme.

“This help in Wales follows that of Scotland, and exposes England as being the poor relation when it comes to support for the private rented sector. It is time for the Chancellor to provide similar assistance for landlords and tenants in England.”

  • Matthew Payne

    £10m will last about 10 minutes sadly, but better than nothing at all.

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    You're right that it's not mega bucks but I had a few tenants already paid me back arrears (between 4-8 months) on the loan scheme who will now be delighted to have the loans turned into grants. Added advantage they will now have some breathing space and cash to keep up to date as we come out of the pandemic (hopefully). These were good professional tenants who deserved a break and the money isn't going into anyone's pockets, it's keeping roofs over their head, stopping wasted court time and legal fees and most of the money I'm getting as a landlord is going straight back into paying off mortgages. Considering that grants were given to small businesses while the letting industry was told - in most parts of the UK - to go whistle, this is the least the Welsh Govt can do and, for once, it's much appreciated and a good idea. NRLA are right - this needs to be expanded across England. Even if it costs half a billion, that's still peanuts considering what has been paid out already to other sectors and in cosy little contracts to mates of the Westminster mob.

     
  • Neil Moores

    The article is confusing. At one point it states "The new scheme is aimed at tenants with rent arrears built up between March 1 last year and June 30 this year; the tenants have to be already in receipt of benefit." 3 paragraphs later it states “The scheme is being delivered by local authorities. Tenants who are not in receipt of housing related benefits, and who have fallen behind on their payments by eight weeks or more as a consequence of the pandemic, between March 1 2020 and June 30 2021, will be eligible to apply for a grant”. I hope it is the latter. People on housing benefit generally had no reason not to pay during the pandemic, other than knowing that they could spend the money on something else and that the Welsh Government wouldn't allow them to be evicted if they did,

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    Hi Neil, yeah I can see how that would be misleading. It doesn't apply to DSS tenants who cannot claim the grant and were not eligible for the original loan. It's only private renters who hit the rocks during covid and took out a loan through the scheme. The money got paid straight to my account as the landlord and they were paying back in monthly instalments. What this new grant does is wipe out the original loans and opens it up for anyone else who may not have claimed originally (as the tenant had to be able to prove they could keep up the payments on the loan so a lot might not have qualified. Luckily the three of mine all did so happy days). Hope that helps.

     
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