Issue - meetings

To consider the joint report of the Director of Resources and the Director of Environment and Neighbourhoods outlining the development of a new product, namely the Local Authority Mortgage Scheme, and its applicability to Leeds.  In addition, the report seeks approval to establish the scheme in order to support the housing market in Leeds.

The Director of Resources and the Director of Environment and Neighbourhoods submitted a joint report outlining the development of a new product, namely the Local Authority Mortgage Scheme, and its applicability to Leeds.  In addition, the report sought approval to establish the scheme in order to support the housing market in Leeds. In determining this matter, the Board took into consideration all matters contained within the accompanying report.

Members welcomed the proposals which had been made, emphasised the positive and wider impact that every transaction would have on the housing market and underlined that the scheme aimed to help re-balance the market in Leeds.

Responding to a concern raised regarding the 95% levels of mortgage which had been proposed to be offered as part of the scheme, Members were reassured that the initiative was not to encourage reckless lending, but to make loans available to those first time buyers who had been subject to a rigorous financial checking procedure.

In response to an enquiry raised, it was confirmed that it was intended for the scheme to be available across the whole of the Leeds area.

In conclusion, the Chair welcomed the support for the initiative which had been given and requested that a further report was submitted to the Board in due course, providing a review of the scheme and inviting consideration of whether the initiative should continue in the future.

RESOLVED -

(a)  That the establishment of a Local Authority Mortgage Scheme for Leeds, to be available within the Leeds Metropolitan District area, be approved.

(b)  That approval be given to £2,000,000 funded from revenue reserves, being placed with a lender as the maximum limit for the total indemnity to be offered under the scheme.

(c)  That approval be given to a maximum loan value under the scheme of £152,000.

(d)  That the approval of detailed matters relating to the scheme be delegated to the Director of Resources.

(e)  That a further report be submitted to the Board in due course, providing a review of the scheme and inviting consideration of whether the initiative should continue in the future.