Current status: Answered by Paul McLennan on 17 September 2024
To ask the Scottish Government what its position is on whether private homeowners in deprived areas reportedly being charged a 4% interest fee by the City of Edinburgh Council on their payment plan as part of the Mixed Tenure Improvement Service is helping to meet its mission of eradicating poverty.
The interest rate is applicable to debt where private property owner occupiers pay back over an agreed period of time. The City of Edinburgh Council consider this a last resort for private property owners who may be able to source more favourable rates through re-mortgaging or external finance. This rate was agreed within the council in 2021 alongside the approval of the enhanced Scheme of Assistance and extension of the debt recovery terms. It is worth noting that interest rates were much lower in 2021.
The policy is aimed at getting the balance right for both the council and debtors whilst not encouraging owners to agree payment plans with the council by default. Debt recovery from owners for the works in Wester Hailes is very positive so far with 77% of debt paid or secured in payment plans.