Supplementary memorandum by the Department
for Communities and Local Government
The Committee has expressed an interest in this
review. In particular, it held an evidence session on 5 March
for stakeholders and Departmental officials.
We have today made a statement to Parliament
on the outcome of the review, and I wanted to take this opportunity
to inform you of our conclusions and of the actions we are taking.
As the statement said, we think that more can
be done in the short term to help leaseholders to deal with high
major works bills through the wide range of existing payment options.
The alternative of simply extending the existing scheme for capping
bills would not target those most in need and would be very expensive.
In the short term, we will make it clear to
local authorities that they should inform and advise all leaseholders
who face particularly high major works bills about the available
payment options, offer the full range of available options, and
share best practice. They should also assist leaseholders in hardship
from the existing resources made available to them (for example,
funding for private sector renewal) which they are already expected
to target towards those in need and on low incomes.
We have increased funding for the Leasehold
Advisory Service (LEASE) so that it can offer social sector leaseholders
authoritative advice and help and to enable it to expand its alternative
dispute resolution and mediation role.
We will also continue to work urgently with
lenders, independent financial advisers and landlords to develop
the use of existing equity release and equity loan schemes, including
the "HouseProud" scheme run by the Home Improvement
Trust.
In the longer term, we intend to legislate to
enable local authorities to offer equity loans to leaseholders,
and to buy back shares in properties so that leaseholders in difficulties
do not have to revert to being tenants.
This is work in progress. We will continue to
actively monitor developments, to maintain focus on the best ways
of tackling these issues both now and in the future.
Baroness Andrews
29 March 2007
| 
