Welsh Government to buy flats affected by cladding crisis

The Welsh Government has announced a new scheme that aims to help those affected by the cladding crisis. Under the scheme, the first of its kind in the UK, the Government says it will offer to buy homes from leaseholders struggling to sell properties or facing financial difficulties.

Announcing the scheme, Climate Change Minister Julie James said that it will be aimed at leaseholders who have found themselves in “significant” financial hardship as a result of not being able to sell their properties, and will be launched this year.

“There are some for whom the financial pressure of living in these buildings is becoming unbearable. I do not want to see people’s long-term futures blighted by bankruptcy, eviction and potential homelessness.

The scheme will target provision where it is most needed in buildings with identified defects where individual leaseholders cannot sell their properties on the open market and find themselves in significant financial hardship due to escalating costs,” said James.

Acknowledging that many leaseholders have tried and failed to sell their homes, or are now living in unsuitable homes, James continued:

“What we want to do is we want to see, in honesty, how many people have attempted to sell their house on the open market and have failed to do so because it puts them into negative equity or because the terms on which they’re able to do so are too punitive for them to be able to countenance that.

I want to be able to see what we can do to help people who are going into mortgage arrears, for example, or have other severe financial difficulties because they’ve managed to pay their mortgage but as a result, they have other financial difficulty.

I’m prepared to look at people who are clearly in overcrowded situations as a result of having had to stay, perhaps, in a premises that was intended as a Starter Home and now they’re a larger family. There are a number of areas of hardship that we’re prepared to look at.”

James also commented on the position of building developers in relation to the cladding crisis.

“Developers and those responsible for these building defects must step up and do more to resolve the crisis. They created these problems and continue to leave leaseholders facing financial hardship and suffering from stress and anxiety. This update demonstrates this government’s ongoing commitment to building safety and the intense work that is being progressed.”

The scheme is expected to launch in the next financial year, with the processing of those taking part to begin imminently.