New loan scheme for private landlords in Scotland

The Scottish Government has announced a new £5 million loan scheme for private rental landlords whose tenants are struggling to pay rent due to the COVID-19 pandemic.

The Private Rent Sector Landlord COVID-19 Loan Scheme will provide landlords with up to 100% of the lost rental income from a property.

To be eligible for the loan scheme you must:

• be a private sector landlord and not classified as a business;
• have five or less rental properties;
• have lost rental income as a result of the coronavirus outbreak.

This new loan scheme also provides further protection to private tenants on top of the protection already available under The Coronavirus (Scotland) Act 2020, which prevents any eviction action being taken for six months.

Any landlords looking to apply for this new loan scheme are advised to seek a mortgage repayment holiday from their lender before applying for a loan.

For further guidance on the COVID-19 financial support available to you or your business contact Backhouse Jones on 01254 828300.