Councils cool over housing package

Four million waiting for council houses

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The government's package of measures to help cash-strapped homeowners will only scratch the surface of the mounting housing crisis, councils have warned.

Responding to the package, which was announced by the prime minister, Local Government Association housing spokesperson Paul Bettison said: "The reality is that the Government is only really able to scratch the surface of a £400bn market. The money made available will only help a small number of people who will need it over the next few years.

"The proposals will help around 20,000 families at a time when there are four million people waiting to get a council house.

"The bold move by the Government would have been to look seriously at allowing councils to lend competitive mortgages and borrow more money against their assets."

Cllr Bettison also warned that bringing forward money earmarked for future social housing to help bail out under pressure house builders.

"We need to make sure that this doesn't mean house building in the future will suffer as a consequence. New money must be made available or we're simply storing up problems in other parts of the housing market."

London Councils executive member for housing Jamie Carswell welcomed the mortgage rescue measures but agreed with Cllr Bettison that the government needed to do more to help councils meet the challenges resulting from the current downturn.

He said: "We think that councils can go even further than the plans outlined by government today: through our own flexible mortgage rescue schemes, by buying repossessed properties and by offering mortgages ourselves.
 
"We will continue to urge the government to provide us with the freedoms we need to set these plans in motion."

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