Councils to buy repossessed homes

Councils to buy repossessed homes

Friday, 29, Aug 2008 02:33

Local councils may be given the power to take over repossessed and unsold homes, ministers are expected to announce next week.

The plan would allow owners facing repossession to stay in the home on a part-by, part-rent basis.

The proposals would form part of a package of measures designed to help Briton's through the credit crunch.

The plans have not been confirmed by the government, although Westminster sources confirm they are in the "right ballpark".

A Department for Communities and Local Government spokesman said: ""We are determined to do everything possible to promote long-term stability and fairness in the housing market.

"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. What form that support will take will be announced in due course."

But the Liberal Democrats continued to pile pressure onto the government today.

"With repossessions already soaring it is essential that the government acts to prevent the widespread homelessness last seen in the Tory recession of the 1990s," Lib Dem economics spokesman Vince Cable said.