On May 5th, the Scottish Government revealed details of the PRS Landlord (non-business) COVID-19 Loan Support scheme. It is now open for applications.
The scheme is open for opened for applications for members of SAL (Scottish Association of Landlords).
This scheme is a repayable loan rather than a grant it will go some way to help those in need and has enabled landlords to access government support. The loan scheme is only open to landlords of five or fewer properties and the loan can be applied for just one property within their portfolio, even where more than one property has a COVID-19 related loss.
The rationale behind this is based on the fact that 95% of Scottish landlords own between one and five properties and that those with more than five properties can spread the risk of non-payment of rent over the larger portfolio and are less likely to require a loan.
This is a welcome first step but SAL believes the scheme should be opened up to help every landlords with portfolios of more than five properties if they are financially dependent on rental income and where their tenants are unable to pay their rent or properties are unable to be let due to the COVID-19 crisis.
Without support, landlords will be forced into difficult decisions on disobeying lockdown guidance over viewings and move ins or losing their business, thus removing essential housing from an already short supply.
SAL continues to make several points to the Scottish Government: