Finally, action on Sale and Rent back schemes

The Financial Services Authority and HM Treasury announced today that they are working with lenders to make sure they are treating mortgage customers in arrears fairly. Emphasis needs to be placed on the individual merits of each case, with possession only a last resort. They also announced that they will be regulating Sale and Rent back schemes under the offices of the FSA

Last year according to the Financial Service Authority (FSA) the number of people who had their homes repossessed in the second quarter of 2008 increased by 71 per cent. 11,054 homes were repossessed in the three months to the end of June 08, compared with 6,476 during the same three months of 2007. Repossessions were also significantly up in the last quarter of 2008. Early forecasts state that the first quarter of 2009 will fair no better for the sector.

The Welsh Tenants Federation welcomes the news following concerns last year, that all was not well with sale and rent back schemes. Steve Clarke, policy and projects coordinator said.

‘Brining Sale and Rent back schemes under the regulation of the FSA, is the best way to ensure that the consumer interest are safeguarded following some appalling cases last year. People faced with losing their homes due to rent arrears see these schemes as a lifeline to safeguard their home. However, some have found that the scheme does not protect them at all, being evicted in a relatively short time thereafter, or having their rents hiked to the extent that they can no longer afford the payments’.

‘Alongside measures introduced by the Welsh Assembly Government to provide regulated mortgage to rent schemes, we are pleased to see that action is finally being taken to protect vulnerable consumers affected by the recent financial turmoil. Finally, it appears that both ends of the spectrum are now being tackled’.

If you are in difficulties paying your mortgage or are facing repossession you should always talk to your lender and seek independent advice. Details about mortgage rescue schemes are available on the Welsh Assembly Government web site.

Telephone: 01685 729156 or 01685 729157, E-mail: shg@wales.gsi.gov.uk

For independent advice:

Contact Shelter Cymru on 0845 075 5005 or visit their website. http://www.sheltercymru.org.uk/shelter/home/

Your local Citizens Advice Bureau are in the phone book or visit their website. http://www.citizensadvice.org.uk/

WAG Consultation Paper - Sustainable Homes: A National Strategy For Wales

The Deputy Minister for Housing, Jocelyn Davies AM has launched the consultation document Sustainable Homes: A National Housing Strategy for Wales on 29th January. At the event, the Deputy Minister underlined the commitment to build more sustainable homes for the future, working with the registered social landlord and private sector to help regenerate areas of Wales.

The Deputy Minister also emphasised the need for the right mix of housing and that housing is the catalyst to improve lives and strengthening communities, making them more sustainable for the future by radically reducing the ecological footprint. This can only be achieved by working in partnership.

The launch took place in the Alway Centre, Broadheath Newport, where Newport City Council have been regenerating the area providing 250 new homes built by Bellway.
The Regeneration project, which has received a high level of community involvement, provides new shopping facilities, a community hall and a multi user games area. A training initiative has also been established with the local Hartridge comprehensive school.

Of the 250 new homes, 50 are part funded by Social Housing Grant to provide affordable rent or low cost home ownership via the Seren Group. The Council are also continuing their significant levels of programmed improvements to existing properties in the area. The hallmark of the whole project has been the extremely high degree of community involvement.


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Copies of the documents can be obtained from the Welsh Tenants Federation www.welshtenantsfed.org.uk or by visiting http://wales.gov.uk/consultations/housingcommunity/housingstrategy/?lang=en