Latest Debt News
Government to announce scheme to avoid repossessions
29/08/2008 16:52:00
Local authorities may purchase repossessed properties as council housing under a government scheme to be announced, a source says.
Councils will also be encouraged to offer financial support to borrowers unable to meet repayments on mortgage debt in return for a stake in their homes, The Times reports.
The plan is expected to be announced next week.
A department for communities and local government spokesperson claims it is doing everything possible to "promote long-term stability and fairness in the housing market."
The representative says the credit crunch is presenting "significant challenges" for the property sector and those struggling to avoid repossession due to debt.
"We are looking at a wide range of options to further support the housing market in the current climate, working closely with industry and lenders," the spokesperson stated.
The measures are expected to be targeted at those most at risk of falling into mortgage debt – first-time buyers and young families.
Earlier this week, Nationwide's survey of house prices found the typical property's value has decreased by over ten per cent in the last year.
© Adfero Ltd