Thursday, August 28, 2008
Alistair Darling, the Chancellor, and Caroline Flint, the Housing Minister, are planning to announce an emergency “mortgage rescue” package next week. Under the plans councils will be encouraged to offer low-income families at risk of repossession the chance to sell a stake of their houses in return for financial help. First-time buyers will also be given council-backed assistance with deposits and town halls will be given extra money to buy up empty unsold new-build properties from developers. A more radical proposal under which councils would have competed as mortgage lenders has been vetoed by Darling.