Royal Borough aims to help 'Houseproud' home owners

24 October 2003

With an estimated £51 million investment needed to remedy disrepair amongst the Borough’s private sector housing stock, the Kensington and Chelsea Council is launching a new initiative to help tackle the problem. The ‘Houseproud’ scheme will enable eligible residents to free-up some of the equity tied up in their homes and use it for repairs and improvement.

The Houseproud scheme is an "equity release product" and is operated by the "Home Improvement Trust", a not-for-profit organisation. Its purpose is to develop and make available affordable loans for essential repairs, improvements and adaptations to the homes of home owners aged 60 years and above. The scheme is also available to home owners under 60 years for adaptations to assist a disabled member of their household.

The Royal Borough will part-fund the running costs of the Home Improvement Trust and pay £500 towards the start-up costs of each loan. This sum becomes due when the Council is notified by the Home Improvement Trust that a new loan agreement has been entered into by the client.

Cabinet Member for Housing, Timothy Coleridge said: “Elderly and disabled residents will be supported throughout the process, from the financial aspects through to the repair and alteration work. This is a clever scheme that takes advantage of the Royal Borough’s unique private and Council housing stock, and market position and will ultimately enhance the area.”

Amongst other services, the Home Improvement Trust will help arrange free independent financial advice on the loan options available, provide a loan with a guarantee of no-repossession, provide a legal service at reduced rates and offer a confidential helpline for all clients. Houseproud will notify the Environmental Health Housing Team at the Royal Borough of eligible, interested applicants and they will allocate an agent to work with the applicant directly.

The equity release scheme forms part of the Royal Borough's new Private Sector Renewal Policy. The policy came into play on 18 July 2003. To apply for an information pack please contact Houseproud Department, RBKC, Freepost MID31088, Nottingham NG1 1BR.

Helpline telephone: 0800 783 7569.

Notes for Editors Private Sector Stock Condition Survey

The Home Improvement Trust:

works with local authorities, national care agencies and Home Improvement Agencies to raise awareness of equity release options available to older home-owners;
arranges the free services of an Independent Financial Adviser who will provide written advice on the options which are appropriate for the client, based on their individual circumstances;
ensures that loan provider partners are regulated banks with empathy for the needs of older people and those with disabilities. The loan providers agree to make funds available at competitive rates and provide a guarantee of no re-possession whilst the original borrower remains in occupation;
provides a centralised legal service through their solicitors at reduced rates to cover local authority searches, the registering of charges and arranging payments on completion of the works;
arranges a competitive valuation service via the national Valuation Office.

The Home Improvement Agency, "Staying Put" will act as the client's agent. Their surveyors will identify required works, prepare specifications, appoint contractors and supervise the works through to final payment stage. Their fees will be added to the equity-release loan.

In this way the client will receive the same level of service as under the current grant regime.

An added benefit is that, as the funding is not via the grant programme but from private finance, the scope of works can go above the basic fitness standard, unlike the present grant funded system.

For more information contact Media and Communications.