27 JUL 2022
The Welsh Government recently launched its Leaseholder Support Scheme to assist those in financial difficulties brought on by the challenges associated with living in cladding-affected properties – the first of its kind in the UK.
The Leaseholder Support Scheme was announced by the Welsh Government in late 2021 and the scheme will see the government purchase leaseholds from homeowners in financial stress due to the complexities of living in a high-rise building with an external cladding system. The leasehold will then transfer to a Registered Social Landlord (RSL) or local authority, with the resident then having the option to either become a tenant of the RSL or to move home. The programme is administered by the Development Bank of Wales.
RICS have been working closely with the Welsh Government and industry partners for several months to develop the technical guidance to support the valuation aspect of this policy – ensuring a fair market value is offered to leaseholders.
This is the latest in several initiatives announced by the Welsh Government that RICS has been supporting to address the challenges of building safety, including f the ongoing work to expand building remediation passports and surveys of high-rise residential blocks in Wales.
Sam Rees, RICS Senior Public Affairs Officer for Wales commented:
“RICS continues to work with governments across the UK to address the challenges of creating safer buildings. The Leaseholder Support Scheme was announced several months ago, and RICS have worked closely with the Minister and their officials to develop the mechanisms to deliver it.
“As the purpose of this scheme is designed to help those in immediate financial hardship, it was critical that valuation guidance and support such as clarity over PII, were resolved in a comprehensive and timely process.
“I would like to extend my thanks to those RICS members in particular who helped to develop and review the valuation aspect – which is critical to supporting leaseholders and ensuring they are not placed at a disadvantage.”