9:08am Tuesday 5th August 2008
By Charlotte Gray
Council leaseholders will be forced to make advance payments for building work to their property, under new rules agreed by Haringey Council.
Homes for Haringey, which manages council homes, is renovating 4,500 properties as part of its Decent Homes Programme, costing leaseholders around £2.4 million.
Improvements will include new roofs and rewiring as well as double glazed windows and insulation, with some outdated kitchens and bathrooms also being replaced.
But in proposals agreed by Haringey Council’s special overview and scrutiny committee last Tuesday, leaseholders will have to pay this money up front to “improve the cash flow to the council”.
Liberal Democrats criticised the move as “unfair”.
The group’s deputy leader, Councillor Richard Wilson, said: “The 4,000 leaseholders living in council property will have to pay an average of £600 for any work to their property.
“The council is asking them to pay in advance. It’s a worry — it’s completely the wrong way. No one pays in advance — you wait to see how the work goes. We think it’s really unfair.”
Leaseholders who choose to pay the whole cost up front will receive a five per cent discount.
Those who decide to pay in instalments will have to start paying before work begins but can spread payment over three years.
Homes for Haringey’s chief executive Paul Bridge claimed most leaseholders were in favour of the changes.
He said: “This is a win-win outcome for Haringey leaseholders.
“Some leaseholders were concerned about the amount they may be charged for essential works to blocks of flats so we worked with them to come up with these options which we believe will minimise the financial impact.
“The right to challenge an invoice if the work is not up to standard will not be affected.
“Other payment options will be offered to people on low incomes or housing benefits.
“Elderly people will, if necessary, generally be allowed to postpone payment until they sell or move to residential care.”
Hornsey and Wood Green MP Lynne Featherstone said: “Many leaseholders are not going to have the money to hand to pay these huge bills up front.
“To add insult to injury the money won’t even be given to the builders until the end so the money will end up sitting in Homes for Haringey coffers. This is simply not a fair way to treat leaseholders.”
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