|
 |
Mortgage Rescue Scheme has Helped NOBODY in Reading - OFFICIAL
16 October 2009
|
The Labour Government's flagship mortgage rescue scheme has - it was confirmed on Tuesday (13 October) - helped nobody at all in Reading since its launch in January.
Liberal Democrat campaigner Cllr Gareth Epps has slammed the failure of the Labour scheme that - while 40 households within Reading Borough saw their homes repossessed in the last quarter for which records are available, and 34 households applied for assistance under the scheme- none at all were found by the Council to be eligible under the scheme. The figures were released by Reading Borough Council at the Credit Crunch Summit and were published at the Full Council meeting.
On being questioned by Gareth about the reasons for this failure, Labour council leader Jo Lovelock admitted that the scheme was based too heavily on tackling negative equity - which is not the reason for the current wave of repossessions. The Lib Dems have demanded that more effective action be taken to tackle repossessions, by reforming mortgage law to allow courts to reduce repossessions. Lib Dems also called for a review of whether more effective steps can be taken by the Council to avoid Reading families losing their homes.
Commenting, Cllr Gareth Epps said:-
"It is clear the mortgage rescue scheme has utterly failed. It has been shown as little more than a publicity stunt that may have raised false hope for residents in the most difficult circumstances.
The Government's own figures say that some 6,000 households are supposed to benefit from this scheme, but only 15 households nationwide have so far been found to be eligible. Repossessions are a ticking timebomb in the current economic climate. In the last recession I saw the effects repossession has on people; I would not wish it on anyone.
The Government should be reforming mortgage law to give courts the opportunity to resist pressure from lenders aggressively pursuing families. I hope the Council can work with Reading's excellent advice services to outline what practical steps can be taken to prevent Reading families from losing their homes."
Editor's Notes:
The Mortgage Rescue Scheme "has been operational across the country since January 2009, aiming to prevent some of the most vulnerable families losing their homes and experiencing the trauma of repossession. The Mortgage Rescue package has two elements: (1) the 'Government Mortgage to Rent' option which involves an RSL purchasing the homeowner's property, enabling the household to remain in the property as a tenant on an assured short hold tenancy, paying an intermediate rent; and (2) the 'Shared Equity' option which involves a RSL providing a loan to the homeowner to enable the homeowner's monthly mortgage payments to be reduced."
The figures are based on information provided by local authorities to the Department of Communities and Local Government and are available at this link to Govt Repossesions Tables
The impact assessment costs of implementation are available from the Impact Assessment Library here
|
| Back to main news page |
|
| News Items |
Daisy Benson selected as prospective candidate for the Reading West constituency
16 January 2010
Full Story
Empty Homes: Major Pledge Launched as Reading's Lib Dem Action Welcomed
14 January 2010
Full Story
Gareth Epps puts fairness at the heart of Reading East's Liberal Democrat campaign
11 January 2010
Full Story
Lib Dems Start Advice Surgery For Polish Community
17 December 2009
Full Story
Berkshire NHS Have No Idea Whether Veterans Are Being Treated Under Govt Priority Scheme
17 Dec 2009
Full Story
NEWS Corporate Assessment findings 'very worrying' on crime and neighbourhoods
12 December 2009
Full Story
Reading Lib Dems Join ‘The Wave’
08 December 2009
Full Story
Bulmershe Bus Campaign Gathers Force
07 December 2009
Full Story
Lights, Cameras, Action !!
20 November 2009
Full Story
Queen's Speech a 'self-serving charade' - Lib Dems
18 November 2009
Full Story
Objections to Closure of Station Hill
09 November 2009
Full Story
Epps Declares the Jolly Anglers' Green Light to Reopen as Pub: "A Massive Victory of National Significance"
06 November 2009
Full Story
Devastating Sandford Farm Appeal Verdict
05 November 2009
Full Story
Kelly Report Must be Accepted in Full
05 November 2009
Full Story
Jolly Anglers Update
02 November 2009
Full Story
Epps, has pledged his support for Vote Cruelty Free
31 October 2009
Full Story
Reading students could face £7,000 tuition fees
17 October 2009
Full Story
Mortgage Rescue Scheme has Helped NOBODY in Reading - OFFICIAL
16 October 2009
Full Story
Gareth Epps Launches Woodley Bus Survey
23 September 2009
Full Story
LIB DEM Survey Exposes Extent of "PUBCO" Damage to Reading's Pubs
07 September 2009
Full Story
|
|
|
