Allow social landlords to buy unsellable houses

8.34.00am BST (GMT +0100) Sat 12th Jul 2008

Can't sell, can't let but the Government is in denial

Liberal Democrat Shadow Chancellor Dr Vince Cable MP has called for councils to engage in large scale acquisition of houses that cannot be sold in the current depressed housing market. The move would provide homes for the homeless or for those who cannot afford to buy or rent in the private sector.

Dr Cable said "The Government is currently in a state of denial about the economy. It does not seem to realise that a recession is looming combined with painful inflation and that the housing market is in a state of collapse dragging down construction companies and mortgage lending banks as well as, potentially, millions of home buyers."

"We suggest that the Government's pathetically small plan for around 1000 homes over several years should be 100 times bigger. Social landlords would be given financial freedom to buy up un-sellable property at a deep discount. The stock of social housing has been heavily depleted after two decades of 'right to buy' and it could be replenished, helping with the homelessness problem which will follow the surge in repossessions. The more entrepreneurial social landlords are ready and able to embark on a programme of this kind and are inhibited only by Government conservatism and lack of imagination."