Extra care funds bail out mortgage rescue scheme

Last month it suspended the mortgage rescue scheme due to lack of funds. It had allocated £12 million to the work for this financial year, but this has nearly all been committed.

Now it has decided to transfer £2 million from building extra care homes, which will see that programme slowed.

The money pledged to extra care will still be allocated but given in instalments rather than a lump sum.

Since it started two years ago, the mortgage rescue scheme has helped 336 households - 680 adults and 351 children – from becoming homeless and £14.1 million has been spent on it.

In a written statement deputy minister for housing and regeneration Jocelyn Davies said: ‘I recognise that this is likely to slow down the extra care programme in Wales but it is essential that we are flexible in how we utilise the finite resources we have available to support the social housing agenda in Wales.

‘Given the limited resources that are available and potential demand we need to ensure that the scheme is targeted at the most vulnerable people and makes the most effective use of public funds.’

People who are disabled and whose homes have to be adapted to meet their needs will now be a priority in the scheme, she added.

Ms Davies also said she will continue to review her budgets over the next year and could consider transferring further funds to the mortgage rescue scheme.

Cate Dooher, head of support services at Wales & West Housing Association, which has two extra care schemes in development, said: ‘The impact on us will be our build [time] might be slightly longer but the spend will be meted out over a longer period. It will take us slightly longer, but it is achievable.’

She was happy money was going to the mortgage rescue scheme, as the housing association had dealt with 17 applications and had 31 in the pipeline.

Nick Bennett, chief executive of Community Housing Cymru, said: ‘If the assembly government is able to be as flexible as possible in order to try to meet the significant amount of [housing] need that’s out there then we will be as supportive as we can.’

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