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7 October 2020 | Firm News | Article by Dominic Marshall

Hugh James supports innovative Welsh Government loan scheme to prevent COVID homelessness

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.

Author bio

Dominic is a partner and head of the banking and finance team. Dominic is a vastly experienced banking and finance lawyer who, since joining Hugh James in 2010 has grown and developed the banking team into a leading player, acting for high street banks, challenger banks, financial institutions and building societies.

Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.

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