FAQs – What you need to know about Tenancy Saver Loans

What is the Tenancy Saver Loan scheme?

This is a loan scheme for tenants who are in rent arrears, or in danger of getting into rent arrears. Tenants can apply for a loan to cover these arrears, and the loan will be paid directly to their landlord or agent.

Why is the Welsh Government introducing the scheme?

We are introducing the scheme because tenants – many of whom don’t have access to housing benefits - have seen a drop in their income due to Covid-19 and that has affected their ability to pay their rent.

When will the scheme begin?

We are aiming to begin the scheme in September.

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 in which a tenant may struggle to pay their rent. Paying directly to the landlord or agent will assure that rent arrears will be covered and will remove the threat of eviction for rent arrears.

Who will deliver the scheme?

We are currently looking at our options in terms of delivery partners. It will need to be providers who can provide loans, and offer a level of additional support to tenants.

Can’t a landlord just evict a tenant anyway after receiving the loan?

The payment will mean you won’t be able to evict someone for serious rent arrears.

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 through our Early Alert scheme or 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 RSW bulletins.