Councils ’should support credit crunch affected homeowners’
Councils should offer greater levels of financial support to homeowners as the credit crunch continues, it has been stated.
In a report by the New Local Government Network, it was suggested that those with housing jobs for local authorities should offer whole or partial mortgages which are set below market rates.
Under such a scheme, councils would be able to borrow money under prudential borrowing rules and offer support to select groups of people such as those with problems paying back their mortgage or prospective first-time buyers.
During the current period of financial tension, it was stated this could help homeowners to avoid repossession and eviction.
Author of the report Anthony Brand said: “[The] government should set £2 billion of its £50 billion intervention package aside for supporting these measures and allowing the hardest hit councils to apply for funding.”
Furthermore, it was stated that local authorities should have more power to allow them to build new homes and convert disused properties into social housing.
In other news, Shelter chief executive Adam Sampson reported that the Local Government Association should give councils more support as people are set to turn towards local authorities for help with housing.
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