Suzanne Fletcher's Blog

A special Housing meeting this morning focussed on the attempts locally to deal with the worst effects of "Credit Crunch".  We all know the bad news, the good news is that there is a team of Council officers who are determined to do whatever they can in many different ways to alleviate the situation locally.  It won't make big changes necessary to solve the situation, but it is good to know people are trying in the face of all sorts of other obstacles too, like the Government cutting the expenditure for some crucial parts of the housing department.

Two important messages for individuals I want to put over.  First is if people are in trouble with either mortgage or rent arrears, then it is crucial to go and seek independent advice.  Those that do so, even if they have to go to court stand a much, much better chance of being able to stay in their home.  Second is do not even think of taking up some of the offers you see for firms to buy your property and rent it back to you.  It will probably end in tears, so please only do so if you seek expert and independent advice.

I am still hoping and pushing for us, either as a Council or in the Tees Valley, to have a scheme called "reverse staircasing" to allow people with a mortgage in financial difficulties to be able to stay in their homes, with a Housing Association buying the equity and renting back to the occupier.  If circumstances get better and their income increases they can go back to buying again.  It is more complicated than that of course, but a way of helping people to avoid eviction, and as the money goes round in circles eventually, it would be self financing over a period of time.  It works in York, where it was pioneered by the Rowntree Trust - so why not here ?