Housing and Mortgages

This is their latest attempt to get the economy going. However, it will not help those particularly those under threat of repossession. How many will risk taking on a 90% mortgage in a market which is still falling? Is this not promoting irresponsible lending and borrowing?

Currently very few people are prepared to venture into house purchase when jobs and housing are so insecure. Many are looking to rented accommodation until they can feel secure again

Many new houses, built before the recession, lie empty. Liberal Democrat shadow chancellor Vince Cable and Sarah Teather, Shadow Housing Minister have again called for councils and housing associations to buy up unsold private houses, allowing them access to funds to bring the homes up to social housing standards. This would have the joint effects of making more social housing available and in cases particularly where construction is incomplete, providing jobs.

It appears that all the tried and tested remedies to get the economy moving and take us out of recession are not working. It is time for some practical short term solutions which will give longer lasting security for all concerned.

The above proposal on homes was one of a number put forward last week by Liberal Democrats. Those proposals also suggested the provision of refurbishment loans for owners of empty homes if the homes are leased to housing associations, and increasing the amount of private housing for rent by using empty commercial property temporarily as housing. Both of these measures give security to the housing supply.

We also believe that there is an argument for bringing in a new type of secure mortgage to help boost lending to house buyers.

Figures have just been released which show that home repossessions rose by 54% last year. It is now time to make sure that the courts only allow homes to be repossessed as an absolute last resort. This will save many families from the terrible situation of having their home taken away from them.