New policy to tackle homes shortage

New policy to tackle homes shortage

A new scheme has been launched to help address the housing shortage during national Empty Homes Week (1-5 December).

The council is hoping that their new empty home loans will help the 3,000 people in the borough who are on the housing waiting list get a home.

Previously under the scheme owners of empty houses have had the option to rent their property to a housing association, who then carry out any necessary repairs and refurbishments and find a tenant. The housing association then recovers the cost of refurbishment and management fees from the rental income and at the end of the lease period they hand the property back to the owner.

Now, in addition to this option, property owners who think they could benefit from the scheme but would like stay in full control of any work can apply for a loan of up to £15,000 to refurbish the property themselves.

Councillor Jacqui Beswick, Cabinet Member for Housing at Rochdale Borough Council, said: “Every month our council officers have to go out and spend time boarding up the windows of empty properties which have been vandalised and this is something people living in that community shouldn’t have to put up with. Just as importantly, there is a chronic shortage of housing in this country. By making it easier for homeowners to bring their empty properties back into use, we can tackle these issues and improve the quality of life for our residents.”

Anyone who owns a property which has been empty for a year or more can apply for the loans, which need to be paid back within three years.

The first year is interest free, with interest rates for the second two years averaging around 3.75 per cent. Loan applicants need to contribute 20 per cent of the loan value themselves and their property must be occupied 12 months after the loan has been granted.

The council will inspect the property to draw up a list of essential repairs which need to be completed as part of the loan agreement and will also suggest desirable works.