Property owners of Raac-riddled homes in Torry are already seeing insurance cover withdrawn and mortgages becoming worthless, MSPs heard in a plea for help at Holyrood.
Hundreds of council tenants in Torry are being permanently relocated over fears about Raac, or reinforced autoclaved aerated concrete, in their homes.
Of the 500 properties needing to be vacated, 364 belong to the council, with 65 of those empty at the moment.
Around 140 private owners of former council properties are also affected.Â
Audrey Nicoll, MSP for the area, raised the alarm at Holyrood on Tuesday.
‘Very difficult’
“Many have mortgages still outstanding and will see a drop. Not just into negative but potentially zero equity”, she said.
“Insurance companies are already withdrawing cover, leaving residents in a very difficult financial predicament.”
SNP Government minister Shirley-Anne Somerville, in parliament, said individual decisions on each property are for the lender or insurer.
But she claimed the Scottish Government will continue talks with the Association of British Insurers to urge them to take a “responsible stance”.
She added: “They will hopefully appreciate that it is a worrying time for everyone involved.”
Funding row
A political row quickly emerged in the days since the problem was uncovered over the lack of financial support from either the Scottish or UK governments.
Aberdeen City Council agreed a £3 million programme to relocate tenants from 299 council homes “as soon as possible” due to the collapse-risk concrete.
North East Tory MSP Liam Kerr said the council will need support after “years of under funding” from Holyrood.
But Ms Somerville blamed Westminster for the financial predicament the Scottish Government faces, which is a nearly 10% cut in capital funding.
She added “not one single penny” had been provided from UK Chancellor Jeremy Hunt despite previously promising funding would be made available for Raac.
Speaking on Friday to the P&J in Aberdeen, Prime Minister Rishi Sunak ruled out any extra support for Torry residents coming from Westminster.
He said the issue should be handled locally, adding that the Scottish Government had received “record” funding.
Council tenants having to move will be given £1,500 to cover rehoming costs.Â
Additional “disturbance payments” will fund removals, new carpets and school transport costs up until the end of term – if youngsters have to move to another part of the city.
Torry residents reeling from the Raac news are being urged to take part in a protest outside Aberdeen City Council’s HQ at Marischal College later this month.
Mr Kerr said: “Shirley-Anne Somerville’s attitude of ‘it’s the council’s responsibility’ is nothing short of disgraceful at a time when Aberdeen residents face losing their homes.”
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