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| Version 0 | Version 1 |
|---|---|
| Call for housing market 'rescue' | Call for housing market 'rescue' |
| (20 minutes later) | |
| A mortgage rescue scheme, and local authorities being allowed to buy unused land are featured in a Liberal Democrat plan to revive the UK housing market. | |
| Treasury spokesman Vince Cable said that changes were needed to stop the "downward spiral" of the market. | Treasury spokesman Vince Cable said that changes were needed to stop the "downward spiral" of the market. |
| Among the proposals are plans for councils to buy empty properties and developers' land-banks to increase the amount of social housing. | |
| The Council of Mortgage lenders said any plan needs to be properly targeted. | |
| Social housing | Social housing |
| The housing market has seen annual price falls of more than 8%, a squeeze on the number of mortgages, especially for first-time buyers, and a slowdown in the number of homes being built. | The housing market has seen annual price falls of more than 8%, a squeeze on the number of mortgages, especially for first-time buyers, and a slowdown in the number of homes being built. |
| Faced with these problems, Mr Cable told the BBC that there should not be an opportunity for easy repossessions by certain "trigger happy" lenders during a tough patch for borrowers. | |
| Instead, he said that the housing trough offered opportunities for the social housing stock to be boosted. | |
| Mr Cable has been outlining the Liberal Democrats housing plans | Mr Cable has been outlining the Liberal Democrats housing plans |
| Mr Cable said that the Liberal Democrat plan would assist the struggling housebuilders who were looking for cash to stabilise their positions. | |
| He said councils could buy unused land owned by developers at a discount rate for use as social housing. | He said councils could buy unused land owned by developers at a discount rate for use as social housing. |
| Mr Cable also called for lenders to go through the full and proper court process to repossess homes. | Mr Cable also called for lenders to go through the full and proper court process to repossess homes. |
| A proposal for a new, regulated mortgage rescue plan would allow those who were unable to make repayments on their home loan to stay in their property as tenants. The rent would be paid to social landlords. | A proposal for a new, regulated mortgage rescue plan would allow those who were unable to make repayments on their home loan to stay in their property as tenants. The rent would be paid to social landlords. |
| 'Rescue' | |
| The Council of Mortgage Lenders said that mortgage rescue plans were being considered in Wales, Scotland and Northern Ireland, with a handful of local authorities in England offering schemes. | |
| Help should be available for those who can't pay, not those who won't pay Council of Mortgage Lenders | |
| Typically, a social landlord takes a share in the property, with the borrower paying a smaller mortgage for their share of the home and rent for the part of the property they no longer own. | |
| But the CML wants a standardised scheme across the UK, leaving repossession as a final resort and reducing the numbers going to unregulated private offers of sale and lease back. | |
| "It is important that mortgage rescue is properly targeted at borrowers in circumstances for whom it is appropriate. Help should be available for those who can't pay, not those who won't pay," said a CML report. | |
| But the lenders' group said that if councils became more hands-on, even going as far as operating as mortgage lenders themselves, then they should be fully regulated in the same way as lenders in the private sector. |