Scottish private rental market faces collapse unless ALL landlords are offered Coronavirus loans

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Two leading industry organisations have made the claim, saying government is currently only offering single-unit landlords the loans at the moment.

Scotland’s rental sector is at risk of
large-scale collapse unless larger portfolio landlords are offered help from
the government’s loan scheme, say landlord and housing groups.

Landlords in the region can now apply for an interest-free
loan with deferred payments if their tenants are having difficulty making
payments because of the Covid-19 crisis.

The scheme covers 100% of the rental income from one property, however, the Scottish Association of Landlords (SAL) and Chartered Institute of Housing Scotland believe many tenants could be left without homes as struggling landlords exit the sector.

SAL chief executive John Blackwood says. “A small-scale landlord operates the same way as other SMEs, some of which may be entitled to government support for each of their separate outlets.

Rent arrears

“We would ask for a similar position for
landlords, even if this was on a sliding scale for additional properties and
where the impact of rent arrears can be evidenced.”

He suggests that landlords
with more than one property should be made to declare that their business doesn’t
qualify for any of the other coronavirus support available, such as the job
retention scheme, business grants, business rates holiday or self-employed
support.

“This would quickly and
easily achieve the same goal but ensure landlords who need support do not slip
through the cracks,” says Blackwood.

He adds: “Debt worries will
make landlords less likely to use this support, leading instead to them selling
up and exiting the sector, reducing housing supply at a time when it is most
needed.”

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