Huhne launches Eastleigh home improvement loans scheme

12.00.00am UTC (GMT +0000) Mon 10th Jul 2006

Eastleigh MP Chris Huhne launched the Eastleigh borough home improvement loan scheme last Friday at a meeting at Wells Place Centre, Eastleigh.

Mr Huhne said the scheme was a welcome way to fund home improvements - including energy insulation, kitchens, bathrooms, rep-wiring, roofs and repointing - for many people who could otherwise not afford to bring their home up to new standards.

"The Home improvement loan scheme will be particularly useful for those like the elderly who have substantial value in their home, but little income. It allows them to improve their home without selling up and moving.

"The Southern Home Loans Partnership that will operate the scheme with South Coast Money Line is a a consortium of five local authorities in south Hampshire, and will be of real help to the 29 per cent of Eastleigh home-owners whose incomes are low enough to qualify for means-tested benefits.

"We have one of the highest proportions of owner-occupied homes anywhere in the country at 93 per cent, but we also have an ageing housing stock with accumulating problems. A quarter of Eastleigh homes have some hazard that could potentially cause injury such as loose wiring or a broken banister on the stairs" said Mr Huhne.

He said that the scheme could make available relatively small amounts from £1000 upwards at an interest rate of 5 per cent, and therefore filled a gap in the market because commercial lenders were not interested in small loans except at extortionate interest rates.

Moreover, approved contractors were supervised in their work so that home-owners could be assured of the quality. Contractors were not paid if the quality of work fell short of specification.

Mr Huhne said he hoped that the scheme would help to bring more local homes up to the Government's decent homes standard, and that he would watch its progress with interest as a potential model for a big national energy efficiency scheme.