Page last updated at 18:51 GMT, Tuesday, 10 June 2008 19:51 UK

Extra cash for home rescue scheme

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The extra money is expected to help around 100 families

The assembly government is putting another 5m into its mortgage rescue scheme, to stop homeowners who face repossession from being made homeless.

The money comes in response to the growing number of households facing difficulties in the credit crunch.

Mortgage Rescue is where a home or a share of it is sold to a housing association and the householder become an assured tenant.

The cash is expected to help around 100 families.

The Mortgage Rescue Scheme had already received around 5m and assisted around 60 households.

Help can range from small loans to a complete purchase of the property.

The funding announcement has been welcomed by Community Housing Cymru, which said repossession procedures in Wales were at their highest level since 1992.

'Local schools'

Chief Executive Nick Bennett welcomed the greater freedom for housing associations to purchase existing properties.

He said: "These interventions have a vital role in preventing repossession and homelessness for the households involved as well as allowing them to remain in the area and any children in the household to remain in local schools."

"These schemes also provide a preferable alternative to some private companies that offer sale and leaseback schemes which often require homeowners to sell the property at considerably less than the market price and rent it back with short-term security."

The extra cash comes as house prices in Wales fell over the last three months, according to nearly three quarters of surveyors.

However the findings of a survey for the Royal Institution of Chartered Surveyors suggested the decline was slowing.

The average number of transactions per surveyor for the same period was said to be at its lowest for 30 years.





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