Welsh government scheme to buy up flats hit by cladding scandal opens
The Welsh government has today launched a scheme that will see it fund the purchase of some flats that are embroiled in the building safety crisis, with the homes to then be transferred to housing associations.
The scheme, which was announced by Julie James, Welsh minister for climate change, in December last year, will be offered to leaseholders who are deemed to be facing significant financial hardship and cannot sell their property because of safety problems.
Eligible leaseholders will be able to choose from a list of independent financial advisors who will provide a valuation at no cost to the leaseholder.
A match will then be made with a housing association to purchase the property, which will then be rented back to the leaseholder, if the leaseholder chooses, or else it will be used to meet the required housing need in that area.
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A cap has not been placed on the number of properties that the Welsh government will purchase but the scheme will be kept under constant review.
Take-up of the scheme is not expected to be large as it is targeted only at those experiencing severe financial hardship.
The Welsh government will use the Social Metrics Commission definition of severe financial hardship and the Office for National Statistics (ONS) formula for measuring household poverty when assessing applicants.
An eligibility assessment calculator will identify income and outgoings. If the outcome shows that the property owner’s income after housing costs is less than 60% of the median household monthly UK income on housing costs, the applicant will be able to proceed.
The scheme will not be open to commercial landlords, but will be open to those who have become ‘accidental landlords’ as a result of the building safety crisis.
Ms James said: “Addressing fire safety defects in medium and high-rise buildings must go beyond cladding to make these buildings as safe as they can be.
“This has been our premise from the outset and, although it makes identifying, addressing and resolving issues significantly more complex, it is the right approach.
“There are no quick or easy fixes, but we cannot compromise on achieving the right, sustainable solutions.
“Anything less leaves the door open to the risk of further issues arising and it is important to me that, once these issues are resolved, they remain resolved.
“We must do this properly, to get it right now and for the future.”
Full guidance on the scheme, including the eligibility criteria, is available on the Welsh government’s website.
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