ALMOST 2000 Glasgow homeowners are celebrating after receiving cash rebates of up to £1000 from the city's biggest factor.

ALMOST 2000 Glasgow homeowners are celebrating after receiving cash rebates of up to £1000 from the city's biggest factor.

Glasgow Housing Association is repaying the cash to owners after it received a multi-million pound rebate from the taxman.

But that is not the only good news for owners - they are also getting a 4% interest payment on the money they are owed.

Cheques will be sent to 2000 people due for the rebate - those who paid their bills in full on time.

GHA officials say all refunds should be completed by the end of the month.

Another 1000 will see reductions in their payment plans.

HM Revenue and Customs did a U-turn this year on the VAT rate to be paid on the housing association's massive overcladding programme.

As revealed by the Evening Times in January, the situation emerged only when a homeowner pointed out a Government green scheme that offered a reduced 5% rate of VAT for projects such as home insulation.

The Glasgow homeowners, many of whom paid more than £10,000 for the work, were charged the full 17.5%. All subsequent work has been carried out at the lower rate.

Taroub Zahran, GHA's chief executive, said she was delighted to be able to repay the homeowners at last.

She said: "GHA is in the process of sending cheques to homeowners and others are being processed.

"We will be compensating those who had paid their overcladding bills in full at the time of HM Revenue and Customs' ruling with an extra 4% interest.

"This is a great outcome for GHA and the homeowners who have already benefited from our multi-million pound improvement works programme."

Sean Clerkin, of Glasgow Save Our Homes Campaign, said: "These rebates will be welcomed by all those homeowners who paid too much."