Warning over Right to Buy Risk

A high proportion of homeowners who were bailed out by the government’s mortgage rescue scheme in the north of England bought their homes under the right to buy. Figures from housing associations that run the scheme, which launched in 2009, reveal a major north-south divide, with some areas seeing as many as 50 per cent of all mortgage rescue applications for right to buy properties. The revelation has prompted fears that the move to reinvigorate the 1980s policy could lead to a fresh round of financial problems as up to 100,000 tenants attempt to capitalise on increased discounts of up to 70 per cent. Read more on Inside Housing.

ALMO Takes On Mortgage Rescue

Rochdale Boroughwide Housing (RBH) has become the first ALMO in the country to acquire properties as part of the government’s Mortgage Rescue Scheme. The initiative is designed to help vulnerable households who may be at risk of having their home repossessed. It allows householders to remain in their home as tenants paying rent rather than as homeowners - and eases both the financial and physical disruption that can occur when a family is forced to move because of repossession. Brighter Horizons the charitable subsidiary of RBH has recently acquired the first two of a planned ten properties in the borough. Read more on 24dash.