AM Lesley Griffiths has welcomed a £5milllion Welsh Government funding package to begin a ‘recyclable’ credit scheme, which can turn unused houses into homes and claimed this could be one way to address the affordable homes crisis in Wrexham.
The ‘houses to homes’ Recyclable Loans Fund scheme enables local authorities to offer loans to landlords and home owners so they can bring run-down or disused residential properties back up to saleable or rentable standard. Landlords can then repay the loans over a fixed period, allowing the loan to be ‘recycled’ for use by the next landlord/ owner.
The Welsh Government announced this week it is to provide £5million to enable the scheme to begin lending from April. Loans are available up to £25,000 per unit, to a maximum of £150,000 loan per applicant and Landlords and owners of empty properties should apply for loans through their Local Authority.
The scheme fulfils a key pledge from the Welsh Labour programme for Government to introduce an empty homes initiative.
Speaking of the move, Lesley Griffiths said:
“I believe this is a simple yet effective idea which could liberate large numbers of otherwise unsaleable or untenable properties onto the market, thus releasing more affordable housing for those on lower incomes, with the added bonus of improving the appearance and viability of many communities across Wales at the same time.
“This initiative will, over time, prove cost neutral for Government, but also facilitate owners and landlords to improve the standard of their properties where they may have struggled to do so otherwise.
“In turn this will generate jobs in the construction sector, so it really is a win –win situation. “
“I hope Wrexham County Borough Council takes action to make this scheme known to local Landlords and owners. The need for affordable housing in the town has never been more apparent.
“This is one means the Council can employ to alleviate the crisis of affordable housing in the town highlighted recently by the Welsh Audit Offices Annual Improvement Report – which does not require development of greenfield sites.”
