Grants scheme launched for essential repairs to private housing

New loans allowing private homeowners to make essential repairs to their properties are being launched in the city. Hull Housing has targeted 3,000 homes in the East Park area with its House Proud leaflets. However, the loans are available to every homeowner aged 60 and over in the city, as well as households with a disabled person of any age.

The loan scheme has been launched by the council, in association with Anchor Trust, to help people who might not otherwise be able to access funding for essential repairs to their property. "For many years, the local authority has provided grants for people in need to make improvements to their home," said Dave Olsen, from Hull Housing. "Those grants will continue to be provided. The loans are for people who fall outside the grant regime and who have difficulty in securing loans from banks and building societies. We are trying to fill in the gaps."

The council is running the scheme in partnership with Anchor Trust, a not-for-profit company, which provides services for owner-occupiers who are over 60. The scheme could help up to 300 eligible people to carry out a range of home improvements, including new bathrooms, rewiring, new roofs, improved security and level access showers "The intention is to visit people, go through what possible options there might be and, by involving their family, help them to make the right decision," said Anchor trust agency manager, Jim McHugh.

Three types of loan are available through the scheme: Capital release loans only need to be repaid when the home is sold, for example in the event of death, and are usually only available to people aged 75 and over. Interest-only loans only require you to pay interest on the loan each month, the amount borrowed (the capital) being repaid on the sale of the home. Capital and interest repayment loans are the same as mortgages, with monthly repayments covering the interest and part of the capital.

The loans, which are being administered by the Home Improvement Trust, range from a minimum of £3,000 up to 30 per cent of the value of the property. Hull City Council will also provide a grant to cover costs of valuation, legal charges and Anchor Trust's fees. The scheme guarantees that homes will not be repossessed.

The scheme was first tried out in Nottingham to try to overcome the difficulties older people face in obtaining funds to carry out home improvements. "Older people tend not to be cash rich but have a lot of equity tied up in their homes," said Dave. "This scheme helps them to secure loans on the strength of that." As well as helping homeowners to access loans, the council and Anchor Trust will also provide a list of recommended surveyors and builders to carry out work.

To receive a free House Proud information pack and video, please call freephone 0800 783 7569