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Fife residents could foot bill after Lomond Homes administration

Fife residents could foot bill after Lomond Homes administration

The possibility householders in Blairhall and Lochgelly could have to fork out thousands of pounds as a result of Lomond Homes going into administration is to be challenged by two councillors at a meeting of the council’s executive committee.

The housebuilder was granted planning permission subject to three Section 75 agreements binding the developer to payments totalling £419,000 towards education, community developments and other infrastructure.

When the executive committee meets, councillors will be asked to consider plans for recovering the money, which could mean residents stumping up.

The potential liability per household has been estimated at £852 or £3,385 in Blairhall and £4,615 in Lochgelly.

According to the council, the figures represent the “worst case scenario”, where no settlement is received from administrators PwC.

Lochgelly and Cardenden councillors Mark Hood and Linda Erskine are to move a motion removing the threat of the council taking legal action against residents of the Lomond Homes New Farm Vale Estate.

Mr Hood, who has been raising concerns about the way Lomond Homes were conducting their business for some years, said: “I have been monitoring closely the Lomond Homes New Farm Vale site for some time and have been raising issues and concerns with council officers in development services about the way in which Lomond Homes were conducting their business for nearly three years. Unfortunately these concerns were not taken on board until last May following a change of administration but unfortunately by this time it was too late to recover the council’s position.”

Mr Hood identified who he believed was to blame for the “mess”.

He added: “Although I believe there has been significant failings by Fife Council officers and a complete lack of leadership by the previous administration, I believe the people ultimately responsible are the directors of Lomond Homes.

“The wider Lomond Group have also shown they are not willing to take any responsibility for those customers who have suffered as a result of Lomond Homes going into administration.”

Council leader Alex Rowley has met with representatives from local community councils and residents’ associations and has acknowledged their unhappiness at the council’s handling of the situation.

The Lomond Group has repeatedly declined to comment on the situation.