News from Welsh Labour

Support for Welsh homeowners is “real help for those in real need” – Wrexham AM

Wrexham’s Assembly Member, Lesley Griffiths, has described a new plan by the Welsh Government to help homeowners facing repossession, as “providing real help for those in real need” during these difficult economic times.

The AM was commenting following publication of the Welsh Government’s new Mortgage Rescue Action Plan.

The plan has been produced by the Welsh Government working in collaboration with a number of partners including local authorities, housing associations and the Council of Mortgage Lenders, to provide support to struggling families as well as ensuring they know what help that is available in Wales.

It was recently estimated there could be as many as 2,250 repossessions in Wales this year – a figure which has prompted the Welsh Government to introduce the plan to help support the most vulnerable households.

The Plan includes steps to be taken to help people at risk of losing their homes as well as 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.

Actions under the Mortgage Rescue Action Plan include:

* Social Housing Grant funding of £9.5m to fund our Mortgage Rescue Scheme. This scheme will fund Local Authorities and Housing Associations to purchase properties from people who are unable to continue with their mortgage payments, and enable them to continue living in the property on a rental basis

* Provision of funding of £80,000 for a new Housing Debt Helpline which will be launched on the 1st July. This service will offer housing and debt advice counselling to people who are threatened with homelessness. It will be run by the Consumer Credit Counselling Service in partnership with the Wales Co-op Centre, and aims to advise over 2,500 households a year

* Consultants have been commissioned to carry out a mapping exercise of all debt advice services in Wales. Once this has been completed we will work with the FSA, Legal Services Commission and other partners to expand access to debt advice services

* A series of training workshops for front line housing and homelessness staff to highlight best practice and demonstrate how home owners and tenants can be helped as early as possible through budgeting and other financial advice

* We are developing affordable housing solutions including equity sharing. This will give opportunities for people struggling with mortgage payments to remain in their homes on a part homeownership part rental basis

* Improving the implementation of the existing Court protocol on mortgage repossession actions, which expects the home owner to have explored every alternative to repossession through alternative repayment arrangements. This will involve discussions with the Court service and judiciary

* Expanding the extent of Duty Advisor schemes in courts which are available to offer on the spot advice to people who are subject to repossession actions

Commenting on the plan, Lesley Griffiths AM said:

“At the end of last year, the Welsh Government was the first part of the UK to introduce a Mortgage Rescue Scheme to help those on the verge of repossession and it proved to be a great success. I welcome the fact the scheme is now set to receive further funding under this plan.

“The new plan is the next phase of providing real help for those in real need. It is important to make sure those homeowners on the verge of getting into difficulties with their mortgage, can access the right advice easily and early. That is why the helpline will be very useful in offering counselling and support to those who are currently struggling.

“The Welsh Government are determined to do all it can to help families stay in their own homes during these difficult times. I believe this plan will go a long way towards providing practical help to ensure that happens.”