Action needed to help families facing repossession

3.21.00pm BST (GMT +0100) Fri 5th Sep 2008

Lib Dem Parliamentary Candidate for Winchester, Martin Tod, has backed proposals to help families who are unable to pay their mortgages and are facing the threat of homelessness due to the downturn in the housing market.

The Liberal Democrat plans aim to reduce repossessions and increase the stock of social housing, including:

• Allowing councils (including Winchester City Council) and housing associations to borrow money to buy up land and empty new homes for use as social housing

• Introducing Regulated Mortgage Rescue Schemes to allow families struggling with repayments to sell all or part of the equity in their house and rent it back from a housing association or private firm to help keep them in their home

• A binding code of practice for mortgage lenders, allowing homes to be repossessed as a last resort.

Commenting, Martin Tod said:

"Here in Winchester, we've seen a worrying 68% increase in repossession claims along with a long waiting list for council houses and housing association housing. If the number of repossessions continues to grow without more social housing becoming available, the situation will get critical."

"We need clear and concrete plans to tackle the problem - nationally and locally. Ministers should give councils and housing associations the option to borrow in order buy up empty homes and sites and cut waiting lists. It's madness that Winchester City Council is selling off council houses as we enter a housing crisis."

"We also need tighter rules on repossession to ensure that people's homes are only ever repossessed as a last resort."

"Finally, we need Mortgage Rescue Schemes. Families struggling to pay their mortgage should have the option to sell part of the equity in their home and rent it back from a housing association or properly regulated private firm."

"People who lived through the last mortgage crisis never want to experience the same situation again."