Wednesday, 3 September 2008

Councils to borrow to lend?

After the rejection, thankfully, of the proposal that Hartlepool Council offer cheap mortgages the Local Government Association is now calling for local councils to be allowed to borrow money against their assets so they can offer competitive mortgages.

If Northern Rock can end up effectively bankrupt then the thought of Hartlepool Council, or any other local authority, BORROWING money to lend out to people makes me shudder. No doubt loading more costs onto Council Taxpayers to ease the Housing Crisis seems like a good idea to someone. Interesting that the proposal allows Councils to borrow against their assets, unfortunately the Government is now insisting that land owned by the Council (a considerable asset in its own right) be sold at below market rate to social house builders” and of course Hartlepool Council divested itself of billions of pounds worth of assets under yet another government scheme when it gave away all its Council Housing a few years ago.

1 comment:

  1. The government also wants councils to compulsory purchase empty property - does this mean all those houses boarded up by Hartlepool Housing in Easington Road which Hartlepool council gave to Hartlepool housing will be taken back again ?

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