Scotland’s Covid loan schemes to end

Scotland’s two loan schemes, the PRS Landlord (non-business) Covid19 Loan Support scheme and the Tenant Hardship Loan, are both closing for new applicants at the end of the year.

The landlord scheme offers interest free loans to landlords who have lost rental income due to tenants struggling to pay the rent due to the pandemic. It can be used to keep up with mortgage repayments if the lender is unwilling to offer a mortgage payment holiday.

Meanwhile the Tenant Hardship Loan offers similar support for tenants in rent arrears.

Payments from the services will still continue until 31st March 2022.

Daryl McIntosh, policy manager and Scottish government specialist for Propertymark, said: “The measures introduced by the Scottish government to aid tenants and landlords who suffered financially during the pandemic must be commended as they went a long way to sustain tenancies and prevent homelessness in a time of uncertainty

“With the payments for both the Tenant Hardship Loan Fund and PRS Landlord Loan Scheme ending on 31st March 2022, we are still to see if the temporary measures which brought about extended notice periods and making the grounds for possession discretionary will come to an end on 31st March 2022 also.

“Data shows that possession orders are not being issued in dramatic numbers, but without financial support, some landlords may find their situation escalates without fair access to justice if needed.”

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