Empty Homes is a charity and is using a £3 million CLG government grant to create an empty homes ‘bank’ to bring more than 300 privately owned properties back into use as affordable housing. The money will set up a revolving fund that will lend landlords money at sub-market rates to fix up abandoned properties in England.
David Ireland, chief executive of Empty Homes, said the charity was looking to find a banking partner to bolster the fund and was in talks with two potential lenders. Mr Ireland said the amount of bank funding needed would be dependant on demands for the loans.
The money will be made available in loans of up to £10,000. The banking partner will provide a loan for any homes requiring more investment, although potentially at higher interest rates. Loans will only be available for homes that will then be brought back into use as affordable housing. Initially this will mean properties being made available for affordable or social rent. The scheme, which equates to an empty homes bank for England, will be piloted in six yet to be chosen local authorities with the first loans expected to be secured before the end of this year.