Saturday, June 14, 2008
Let the government provide subsidised mortgages
A little known fact is that local authorities have a history of providing mortgages and would routinely lend to hundreds of thousands of local residents right up until the early 1980s. Today, the New Local Government Network is calling on the Government to look afresh at the potential for councils to step in to directly help those residents facing greatest difficulty. Under the scheme, councils could act as mortgage providers under prudential borrowing rules, in which interest rates can be lower than commercial rates. Many Yorkshire cities have encouraged city centre living, and a collapse in this market could reverse the prosperity that has seen an economic and retail renaissance over the past decade.