Hugh James has assisted the Welsh Government in developing an innovative new loan scheme to help tenants struggling with rent arrears due to the coronavirus.
Dominic Marshall, of our Banking and Finance team, advised the Welsh Government on the provision of finance for the scheme, which launches today. It will ensure that financial support is given to people struggling with rent payments, by providing funds directly to their landlord.
Head of the Hugh James Banking and Finance team, Dominic Marshall said today:
“We’re genuinely delighted to work with the Welsh Government’s Housing Policy division to help get this innovative scheme off the ground. It demonstrates the Government’s practical commitment to helping those who are at greatest need at such a critical time.
A lot of people will be made homeless unless they get urgent help with their rent. Through this loan scheme, effective safeguards are put in place so that the money ends up in the right destination to ensure that it makes a real difference to people’s lives.”
Under the scheme, the Welsh Government will use the Wales Council for Voluntary Action (WCVA) to manage the loans, distributed across seven credit unions in Wales. Tenants can apply to their local credit union for support and, if eligible, the funds will be forwarded directly to the landlord. The scheme offers 1% APR loans to be repaid over a period of up to five years, with credit unions providing support to tenants for the duration of the loan repayment term.