Lib Dems launch social housing agenda
By politics.co.uk staff
The Liberal Democrats have unveiled a series of proposals designed to prevent repossession and free up more social housing.
The plans include a ‘repair and renewal’ scheme for owners of empty properties if they agree to lease them for at least five years to housing associations.
“Millions of families have been let down by Labour’s housing failures,” said Lib Dem housing spokesperson Sarah Teather.
“As the recession deepens, social housing queues are growing ever longer while the construction industry has ground to a halt.
“Renovating empty and abandoned properties can provide low cost homes while boosting the struggling construction sector.”
Commercial properties which were temporarily used for housing would be able to claim commercial property rate relief while ‘safestart’ mortgages would be aimed towards bringing lending down to normal levels.
In addition, housing associations and local authorities would be able to use Homes and Communities Agency funds to improve newly purchased unsold private housing stock.
The party also stressed the need to only make repossessions a last resort.
Lib Dem economics spokesman Vince Cable said: “We are now facing a repeat of the Tory recession of the 1990s, with tens of thousands of families facing repossession in the year ahead.
“It is critical, not only for those who may lose their homes but also for the wider economy, that we have a comprehensive plan to ensure that repossession is only ever a last resort.
“In the future, people must have access to low risk, simple mortgages which ensure that those who have sensible deposits are protected from negative equity.”
Mr Cable also outlined how tomorrow’s expected Council of Mortgage Lenders (CML) figures on repossessions will be more realistic than the previously predicted 75,000 for 2009.
The SafeStart mortgage, which was outlined by Lord Oakshott, would aspire to be an “Aldi not a Waitrose” mortgage. Calling 100 per cent mortgages “entirely dangerous”, Lord Oakshott explained the Lib Dem’s proposed mortgage would provide a five years fixed, no fees, no frills loan.
Ms Teather also said the government’s promise of £200 million for housing associations was a “drop in the ocean when you see how many people are waiting for social housing”.
A VAT cut, in particular for repair and renewal, was also proposed as a means of reducing incentive for rogue traders, bringing empty homes back into use, and encouraging energy efficiency improvements.
Of particular importance to the Lib Dem’s was the increasing number of people waiting for social housing in comparison to the decreasing amount of social housing stock.
Ms Teather highlighted she would like to see the government buying up land, as well as unsold properties, through the National Clearing House.
However, she also noted this did not mean “lowering physical standards” as she said the Tories proposed last week.
The ‘Short-life housing’ proposal would aim to “catch those who fell through the net” according to Ms Teather.
This low-cost short term housing solution would provide a home for those who don’t qualify for social housing, as those who are not deemed ‘vulnerable’, but who still struggle to afford rent.
