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Liberal Democrats launch new housing plans

Catherine Deshayes

The Liberal Democrats have proposed new plans to boost the housing market that would involve the Government buying up council land and using it to build new homes on.

They have already backed plans to build 1.3 million new social homes over the next ten years at their annual Spring Conference today earlier this year.

Their plans aim to greatly reduce the waiting list for social housing which currently stands at over 1.6 million, which is a rise of nearly 60 per cent since 1997.

In a series of new measures announced by treasury spokesman Vince Cable, the party is also proposing the creation of a code of practice among mortgage lenders to ensure that repossession is only used as an absolute last resort.

Mr Cable said, "The Government seems obsessed with fighting a losing battle to artificially prop up the housing market, rather than finding ways to deal with its worst effects."

The creation of the additional homes would be for social housing, which in turn could free up other homes for the buyers market.

Liberal Democrat Shadow Housing Minister, Lembit Öpik said, "We must build faster and better with at least one million new affordable homes in the next ten years to solve Britain's housing crisis.

"Successive governments have let social housing crumble. There are almost one million fewer social houses available now than during the last housing market crash.

"Without this crucial safety net, what will happen to the 45,000 families expected to have their homes repossessed this year?

"The Liberal Democrat proposals will help families into homes that they can afford in communities that are sustainable," Mr Opik added.

The latest proposals come at a time when many are waiting to see what proposals the Government will announce to deal with housing in its November pre-budget report.

Recently, Chancellor Alistair Darling refused to confirm or deny that new measures may involve changes to stamp duty, a factor which many, including the National Association of Estate Agents, believe, is slowing the housing market as buyers wait to see if they can save money should a stamp duty holiday be introduced.