‘Stuck with Empty Homes scheme until end of 10-year leases’
ROSSENDALE’S council leader Alyson Barnes provided an update on the Empty Homes Scheme debacle at last week’s council meeting.
Following questioning from Conservative Coun Granville Morris, Coun Barnes gave assurances everything possible was being done to minimise costs to the taxpayer from the failed scheme.
However, she pointed out that the council would not be free of the scheme until its final 10-year leases expire - understood to be the end of 2024.
The council picked up the tab after AAAW Ltd, a company the council brought in to manage the refurbishment of hundreds of homes across East Lancashire, went into liquidation in 2015. Last December, we reported the net cost of the project had risen to £6.5m after councillors approved an additional £650,000 tranche - taking the total cost for last year to £950,000.
Coun Barnes told the meeting: “It’s a difficult project; we all know that and it will stay with us until the end of these final leases in four years’ time.” The council is actively seeking to mitigate future costs through the active pursuit of rent arrears, the removal of properties from the scheme at the earliest opportunity, ensuring leases are terminated at end date and properties returned to owners promptly, actively managing and challenging legal claims, ensuring repair costs are value for money, and owner loans are repaid.
Coun Barnes said regular updates on the project had been provided to the council through Audit & Accounts and the Cabinet.