Loan scheme launched to refill 400 empty homes

A campaign will soon get under way in a bid to tackle the problem of about 400 homes standing empty in the borough.

The Royal Borough is launching the scheme, in time for National Empty Homes Week at the beginning to December, to bring housing back into habitable use by introducing a flexible loans program.

The scheme will take form of a five-year bridging loan, which must be re-paid at the end of the period by selling or re-financing.
During the life of the loan the owner can make regular monthly payments, occasional payments or can just allow the interest to roll up.

The interest rate on the loan is two per cent above the Bank of England rate, which currently stands at three per cent, and the interest is calculated monthly. There are no penalties for early repayment.
The maximum loan will not be allowed to exceed the lesser of two-thirds of the value of the property or the cost of the proposed works. Further advances, or staged payments, may be possible if the value of the property increases as work progresses.

The initiative is being taken up by 15 other local authorities across Berkshire, Buckinghamshire, Oxfordshire and Surrey.

Cllr Simon Dudley, cabinet member for housing, said: “With more than 660,000 long-term empty homes in England - and approximately 400 in the Royal Borough alone - it is vital that we do something positive to bring as many properties as possible back into habitable use. We are delighted to be able to lead on this scheme to provide loans to owners to help them turn their eyesore properties into habitable houses which can be lived in once again.”

• For further information about the loan scheme contact Martyn Clemence, housing projects officer, on 01628 683596.