Sunday, 11 May 2008

Credit crunch hits Southport

  • Action required after massive rise in housing repossessions revealed

    ‘The credit crunch has hit Southport’ claimed Iain Brodie Browne deputy leader of the Lib Dems on Sefton Council.
    County Courts report a big leap in Housing possession orders across the N.W.of England. In Southport we have seen a staggering 61% increase in possession claims-the first stage of threatened action by the banks and building societies against homeowners. Iain proposed a number of immediate actions that the government should take to stop the surge in repossessions

  • a statutory obligation on both parties to submit to an independent financial assessment by an agency like the CAB and for lenders to offer a range of payment alternatives so as to keep families in their homes – involving share ownership and rental arrangements – with an equitable sharing of losses.
  • social landlords (Housing Associations) to act as a buyer of last resort, to prevent a fire sale of repossessed property and to rebuild the depleted stock of social housing. Liberal Democrats in Southport have been campaigning for a long time for an increase in affordable housing in the Town.
  • we now must also look forward to how we ensure this never happens again. Regulatory measures governing bank reserve capital can and should be operated via a counter cyclical means to ensure we do not have credit binges in boom periods and credit droughts in down turns. Equally house prices must be included in the Bank of England's remit to control inflation, to prevent future housing bubbles.

Iain continued; ‘there is a public interest in averting a wave of repossessions which would lead to much misery and local and national taxpayers shouldering the cost of housing the homeless as well as a likely overcorrection in the market’.