A Welsh housing charity has reacted with alarm and dismay to the news that the Mortgage Rescue Scheme has been suspended in Wales.
John Puzey, director of Shelter Cymru, described the move as ‘extremely short-sighted’ and urged the Welsh Government to reconsider.
“We are fully aware of the many competing demands on public funding, but suspending the Mortgage Rescue Scheme will have serious implications for many people struggling to keep a roof over their heads,” he said.
“The £9m budget for the scheme is relatively modest, but it has been used very effectively. It has helped hundreds of people to remain in their homes when they would otherwise have been faced with the trauma of homelessness, which in turn would have put an enormous strain on local authority resources.”
The Mortgage Rescue Scheme supports households threatened with repossession by enabling Registered Social Landlords to buy a part or full share in the property. The owner then remains in the house as a tenant at an affordable rent. So far, the scheme has prevented more than 600 adults and 300 children from losing their homes.
“We urge the Welsh Government to think again,” said Mr Puzey. “Scrapping the Mortgage Rescue Scheme might save some money in the short term, but it will cost us all more further down the line, both financially and socially, as local authorities are left to deal with the fall-out of repossession.”
