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Councils 'need new housing power' Councils 'need new housing power'
(about 5 hours later)
The Liberal Democrats are calling for councils to be given powers to buy up unsold or repossessed properties, in an effort to ease the housing crisis.The Liberal Democrats are calling for councils to be given powers to buy up unsold or repossessed properties, in an effort to ease the housing crisis.
The party's autumn conference will vote on a scheme allowing local authorities and other social landlords to borrow against their assets to enable this. The party's autumn conference backed a scheme allowing local authorities and other social landlords to borrow against their assets to enable this.
The Lib Dem leadership also proposes more protection against "rogue doorstep companies" offering financial products.The Lib Dem leadership also proposes more protection against "rogue doorstep companies" offering financial products.
It accused Labour of offering "token gestures" to struggling homeowners.
Safety net
Outlining the party's plans, Treasury spokeswoman Julia Goldsworthy said the government had been in a state of "denial and then panic" about the scale of the problems in the housing and mortgage markets.
In contrast, she said the Lib Dems had been the only "voice of reason" in identifying the bubble in mortgage lending which contributed to the Northern Rock crisis.
She reiterated calls for homeowners struggling with mortgage payments to be given extra help to renegotiate their loans so as to ensure people were only forced out of their homes as a "last resort".
The party is also backing a statutory code of practice for mortgage lenders and for all borrowers to be offered free financial advice.
Current social housing stock was "ill-equipped" to provide a safety net for those unable to get on the housing ladder or at risk of losing their home, she argued.
"We must take action to prevent a deepening in the crisis in social housing," she said.
Other debates later include ones on transport and European policy.Other debates later include ones on transport and European policy.
'Irresponsible'
Proposing the housing motion on Tuesday, Lib Dem Treasury spokesman Vince Cable is expected to blame "irresponsible levels" of lending for contributing to a growing number of home repossessions.
He will also attack the government for "making no attempt to deal with the housing bubble" which existed prior to recent price falls.
Mr Cable will reiterate his call for a statutory code of practice for mortgage lenders and for all borrowers to be offered free financial advice.
On Monday, the conference, in Bournemouth, voted to promise tax cuts for low and middle earners at the next general election.On Monday, the conference, in Bournemouth, voted to promise tax cuts for low and middle earners at the next general election.
The leadership says this can be funded using some of the £20bn it has earmarked for "efficiency savings" to public services.The leadership says this can be funded using some of the £20bn it has earmarked for "efficiency savings" to public services.
The autumn conference, Nick Clegg's first as party leader, lasts until Wednesday.The autumn conference, Nick Clegg's first as party leader, lasts until Wednesday.