News from Welsh Labour

AM welcomes fresh support for struggling homeowners

Vale of Clwyd AM Ann Jones has welcomed a new plan to help homeowners facing repossession, which was launched by the Welsh Assembly Government today.

In light of the current economic climate, the Mortgage Rescue Action Plan has been produced with a number of partners including Local Authorities, Housing Associations and the Council of Mortgage Lenders to provide support and inform struggling families.

A recent estimate suggested that there may be around 2,250 repossessions in Wales during 2009 and the Welsh Assembly Government is determined to do all it can to support the most vulnerable households.

The Plan includes steps to be taken to help people at risk of losing their homes. It includes actions to provide easier access to debt advice, specialist training for front line staff, new affordable housing solutions (including opportunities for equity sharing), and development of a national Financial Inclusion Strategy.

Responding to the economic downturn in 2008, the Welsh Assembly Government introduced a Mortgage Rescue Scheme, five months before a similar scheme was introduced in England.  The grant can be used by Housing Associations to provide a Homebuy equity loan to reduce the outgoings of the householder to a manageable level. Where home ownership is not sustainable, the property can be purchased outright and the owner can be offered an assured tenancy to allow the household to remain in the home. 

So far the scheme has helped 58 families stay in their home with £3.6 million of funding.  An additional 49 properties are in the process of being purchased.  For this financial year we will be providing £9.5 million of support.

Ann Jones said:

“I am pleased to see that the Welsh Assembly Government is tackling this problem head on. The current economic downturn has hit families with mortgages hard so it is vital that help is out there.

“With families already saved from homelessness I hope this plan can offer more help to more families. We need to do everything we can to prevent repossessions for households in Wales.

“The Conservatives provided no help for families facing repossession when they were in power but the Labour-led Assembly is offering flexible and practical support in these tough times.”

Other news from Welsh Labour

• AM: Time to celebrate a People's History of Wales - 26 February 2010
• AM welcomes safer rail travel in North Wales - 23 February 2010
• Wales Boiler Scrappage Scheme announced - 11 February 2010