Tenant Hardship Loan Fund launched to help struggling tenants

The Scottish Government has established a £10m Tenant Hardship Loan Fund as part of support for tenants who are struggling with rent as a result of impacts due to Covid-19.

From January 1st 2021, eligible tenants can use the loan to clear rent arrears up to a maximum of 9 months of agreed rent. Tenants can also borrow up to 3 months of future rent payments as part of the 9 month total.

The loan is intended to provide an additional short-term measure to support tenants with managingtheir rent arrears and help them get back on track. Loan repayments will be deferred for 6 months as standard and repaid over a 5 year period.

Please note that the loan might not be a suitable choice for everyone, and before applying for the Tenant Hardship Loan Fund, you should seek advice about any financial support you may be eligible for that doesn’t need to be repaid. Before being awarded a loan, you’ll also need to pass a credit and affordability check.

To confirm your level of arrears, the loan fund administrator will contact your landlord to check the amount of rent due, the level of outstanding rent arrears and the dates that the arrears relate to. The loan fund administrator will also ask landlords to sign an agreement not to take action to repossess a property on the grounds of rent arrears. If any action to end a tenancy on these grounds has already been started, this will also need to be withdrawn.

More information is available from the Tenant Hardship Fund website.

You can also contact PRSTenantHardshipFundCovid-19@gov.scot if you have any questions.