The Welsh Government have launched a Tenancy Saver Loan scheme, which they describe thus: “Paid directly to landlords or agents, the scheme will offer 1% APR loans to be repaid over a period of up to 5 years.”
Plaid Cymru Shadow Housing Minister, Delyth Jewell MS, said,
“Offering a loan to someone in rent arrears replaces one type of debt with another. While for some tenants, whose loss of income may only be temporary, this might be a way of not losing their home, for others, it’s delaying the inevitable. In all cases, the recipient of the loan will have to pay interest on that loan, and for that reason I would question whether this is really designed with the tenant in mind.
“If the Welsh Government really wanted to help tenants, they could have looked at rent controls, extensive support for those who have lost income as a result of the pandemic, and in the longer term, look to reduce the private rented sector through increased social housing and proper regulation. Ultimately, the real winners of this Welsh Labour Government scheme are private landlords, and the people of Wales whose only option of housing is via the private rented sector, will suffer as a consequence.”