Loan Scheme or Loan Trap? UK RAAC Campaign Pushes for Fairness in Clackmannanshire

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On July 3rd, a significant meeting took place involving representatives of the UK RAAC Campaign Group and officials from Clackmannanshire Council — including Housing Manager Murray Sharp and Project Manager Kim Grieve. The focus was the Council’s loan scheme designed to fund urgent remedial works for homes affected by Reinforced Autoclaved Aerated Concrete (RAAC), a serious structural concern impacting many properties.

The UK RAAC Campaign Group, led by Chairperson Wilson Chowdhry, has since issued an open letter to Kevin Wells, Strategic Director for Place at Clackmannanshire Council. The letter highlights a series of pressing concerns regarding the loan scheme, emphasizing the need for fairness, flexibility, and transparency to protect homeowners caught in this difficult situation.

Key Issues Raised:

1. Loan Security Requirements:
   The Council’s insistence on placing second legal charges on properties — especially where homeowners only own one property or have existing mortgage restrictions — is both legally and financially unworkable for many. The group urges the Council to consider alternatives such as personal guarantees or limited charges, ensuring that no homeowner is unfairly excluded.

2. High Interest Rates and Funding Transparency:
   Homeowners were initially told the loan would be low or no-interest. Yet, the Council has imposed a 5.5% interest rate, citing its own borrowing costs as justification. The group demands documentary evidence of these costs and asks whether alternative funding sources, such as government-backed funds, could reduce the financial burden on residents.

3. Barriers to Alternative Finance:
   A policy requiring homeowners to pay 50% upfront if they choose their own finance options effectively blocks more affordable borrowing alternatives, limiting residents’ choices.

4. Confusing Administrative Charges:
   While the contractor assures homeowners they can manage the work directly without extra costs, the Council insists on charging administrative fees. This contradiction raises serious concerns about transparency and value for money.

5. Valuation Discrepancies and Homeowner Recourse:
   Fiona Crichton, a homeowner involved in the campaign, has been engaging with Shepherd Surveyors’ Kieran Bonner. Mr Bonner noted that the property valuations could be higher if the properties were better presented. Following the meeting on July 3rd, Mr Sharp agreed to review these valuations to ensure homeowners receive fair assessments. The letter also calls for clear explanations on what happens if a homeowner is dissatisfied with their options — specifically, whether a Compulsory Purchase Order (CPO) would be initiated, and if so, what procedures would follow.

6. Early Redemption Clarity:
   The Council assured there would be no penalties for early repayment of loans apart from accrued interest. However, the group has requested this be confirmed in writing to prevent future confusion.

7. VAT Transparency and Respectful Communication:
   Concerns remain over VAT charges being passed to homeowners despite the Council’s status as a net-zero VAT recipient. A recent meeting was abruptly ended by Mr Sharp when questioned about VAT, leaving homeowners feeling dismissed. The campaign group urges the Council to provide a clear, written explanation of the VAT position and to treat residents with the respect they deserve.

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The UK RAAC Campaign Group’s letter underscores the urgent need for Clackmannanshire Council to engage openly and constructively with homeowners, revisiting the loan scheme to ensure it is fair, transparent, and workable. Homeowners face an incredibly challenging situation, and it is vital that public bodies support them with empathy and clarity.

Wilson Chowdhry, Chairman of the UK RAAC Campaign Group, said:

"The current loan scheme imposed by Clackmannanshire Council is nothing short of a disgrace. Homeowners already living with the fear and disruption caused by RAAC are being slammed with crippling interest rates, impossible security conditions, and hidden fees that only deepen their financial and emotional distress. This is a gross failure of duty by the Council—turning a public safety crisis into a personal financial nightmare for residents. We demand that the Council stop passing on its own borrowing costs to vulnerable homeowners, immediately scrap the punitive conditions that exclude those with limited property assets, and come clean on the true financial picture behind these loans. It’s time for real transparency, genuine dialogue, and flexible solutions that put people before paperwork. We call on Clackmannanshire Council to listen, to act fairly, and to restore trust before irreparable damage is done. Homeowners deserve respect, not ransom. We stand ready to work alongside the Council, but make no mistake—if these demands are ignored, we will escalate this campaign to ensure that justice for RAAC-affected families cannot be denied.”