Local councils 'could be given powers to help homeowners'
Date: 16/06/2008 12:00:00
A report has said local councils should be doing more to help homeowners struggling with the effects of the credit crunch.
The New Local Government Network (NLGN) says the authorities should adopt US-style mortgage support plans to prevent repossessions and help the housing market.
Officials from the group suggested a scheme whereby local councils borrow money under prudential rules and offer it as support to a select group of people, such as first-time buyers or those with mortgage difficulties.
The NLGN said: "With repossession levels at their highest since the early 1990s and many households struggling with mortgage payments, NLGN argues that councils are in an ideal position to help stabilise the housing market."
Households struggling financially could look at ways of reducing fuel consumption or look into changing the providers of services which have regular payments attached, such as
home insurance or electricity.
The NLGN is an independent thinktank which aims to encourage policy changes and improvements in local government efficiency.