The Scottish Government has launched the Private Rent Sector Landlord COVID-19 Loan Scheme, which is offering eligible landlords interest free loans of up to 100% of lost rental income for a single property. The loan Scheme will support private sector landlords who are not classed as a business, have five or less properties, and have lost rental income due to tenants unable to pay rent as a result of the COVID-19 pandemic. Housing Minister Kevin Stewart said:

“We want to ensure no one loses their home during this unprecedented public health pandemic which is why we passed legislation to protect tenants against any eviction action for six months.

This new £5 million loan fund builds on that action and offers landlords the same security as tenants, ensuring they have financial support if tenants struggle to pay rent because of coronavirus.

While all tenants should pay their rent if they can, we recognise the financial pressure people are facing. The Scottish Government encourages landlords to talk to their tenants about rent payment issues. We also expect landlords to be as flexible as possible with their tenants, discuss managing rental payments and help them find sources of financial support and advice.”

The Scottish Association of Landlords acknowledged that this loan scheme is a step in the right direction and will continue to work with the government and public bodies to ensure that further steps will be taken soon. Any landlords facing difficulties with mortgage repayments should first seek a mortgage holiday from their lender before applying for the loan.

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