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Scottish government urges MHCLG to intervene after cladding issues lead to unsellable flats
The Scottish government has pleaded with the UK housing secretary to find a solution to the problem that has left thousands of leaseholders unable to sell or remortgage their homes due to questions over cladding.
In a letter seen by Inside Housing, Scottish housing minister Kevin Stewart said the requirements homeowners are being asked to meet “appear to be near impossible” and said lenders’ requests “appear to have been introduced unannounced and without due consideration to the impact on those trying to sell property”.
He wrote: “I understand that you believe that the solution for this must come from industry. However, this appears to be a slow process and I would urge you to push for a swift response and resolution from the mortgage industry.”
The letter follows reports that thousands of leaseholders in the UK are having their homes valued at zero if they are unable to provide detailed information about the type of cladding present on their building.
Published by the UK government in December 2018, Advice Note 14 calls on building owners of blocks over 18m to check for and remove non-aluminium composite material cladding. For those blocks that have yet to be checked or have materials removed, mortgage brokers and surveyors have often given those properties a valuation of £0.
This has had a knock-on effect on leaseholders of high-rise blocks in Scotland, with many unable to secure mortgages.
The Scottish government said UK housing secretary Robert Jenrick is yet to respond to Mr Stewart’s letter sent on 18 October or to a follow-up letter sent on 8 November.
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Speaking in the Scottish parliament recently, Mr Stewart said: “We have chased these letters up, we have had no reply.
“Any members here who have any influence over Mr Jenrick and the UK government, if they too can add pressure to get a response that would be useful, not only for the Scottish government but also for those folks who are currently left in limbo.”
Last month, Inside Housing revealed that 650 families living in high-rise blocks owned by housing associations in London are unable to sell or remortgage their homes following the mortgage industry’s reaction to Advice Note 14.
Mr Stewart said: “The current situation is that people are being penalised through no fault of their own, and finding a solution is imperative for them as individuals and the wider housing market.
“Finance and lending is a reserved matter and this is primarily an issue for the lending industry with the UK parliament, ministers and the Financial Conduct Authority in an oversight role, and I have been pressing for urgent action so this situation can be resolved quickly for homeowners.
“Lenders and surveyors have been working to find an answer, and Scottish government officials have met regularly with UK Finance, the Royal Institution of Chartered Surveyors and others to consider options. I have offered the ongoing assistance of my officials to ensure any solution is in line with Scottish legislative and regulatory requirements.”
A central government representative said it was unable to comment due to restrictions during the general election period.
