Tenant Saver Loan Scheme: Frequently Asked Questions
The Welsh Government recently announced plans for a new Tenant Saver Loan scheme, allowing tenants to pay off rent arrears built during the Covid -19 pandemic.
The loan scheme is something the NRLA has been campaigning for, and is set to be introduced as early as September, with loans to be paid to landlords directly.
Landlords can read more about the details about the new scheme in a frequently asked questions document that has been published by the Welsh Government.
We have outlined some of the FAQ's listed in the document below:
How much can tenants borrow?
There is no limit on what a tenant can borrow, but the loan repayments will need to be affordable, and the amount can only cover any arrears built up since 1 March.
Why is this not a loan for landlords?
We considered this, but providing a loan to a landlord does not necessarily remove the threat of eviction from a tenant. A tenant would still be in rent arrears to a landlord.
Who is the money paid to? The tenant or landlord/agent?
The landlord or agent. The loan is purely for rent arrears, or for future periods which a tenant may struggle to pay their rent. Paying directly to the landlord or agent will provide assurance that rent arrears will be covered, and will remove the threat of eviction for rent arrears.
Who will deliver the scheme?
The Welsh Government said they are currently looking at options in terms of delivery partners. It will need to be providers who are able to provide loans, and offer a level of additional support to tenants.
What happens if a tenant can’t repay the loan?
We would expect the loan provider to be sympathetic to the situation that a tenant may be in, and to only apply formal recovery of the outstanding loan once all other options and offers of support have been exhausted. The landlord will not be affected by any debt the tenant may owe to the provider.
How can tenants apply for the scheme?
Through a range of routes. They could be referred though our Early Alert scheme or through their local authority. They could also approach the scheme provider directly.
How can I find out more?
Further details about the scheme will be available in forthcoming Rent Smart Wales bulletins.
- To read the NRLA's reaction to the announcement of the loan scheme, click here