Aberdeenshire Council's Housing and Social Work Committee is set to approve home improvement loans worth £250k next week.

The Equity Loans Policy would allow homeowners to pay for improvements and repairs to their homes.

A fund of £250k has been established for the scheme which could see people apply for a loan in return for a share of equity, which would then be repaid when they sell their home.

The scheme was approved in principle by members of Aberdeenshire Council's Policy and Resources Committee at a meeting in January.


If approved next week, the fund will be made available for those who are unable to pay for essential repairs and maintenance to their homes. It would initially prioritise elderly or vulnerable homeowners, properties in selected regeneration areas and ex-council properties which are adjoin existing council properties.

The loans, which would be for a minimum of £5k, would only have to be repaid once the house is sold.

The new scheme aims to provide affordable lending opportunities for homeowners who may otherwise find it challenging to obtain finance.

According to the Scottish House Condition Survey (2008 – 2010), it was estimated that £118m needs to be invested in private sector housing in Aberdeenshire to tackle comprehensive repair problems and improvements.

(JP/CD)