PRESS DIGEST - Financial Times - Aug 9

Sat Aug 9, 2008 12:15am EDT

The Financial Times

HOME LOANS 'RESCUE REMEDY' TABLED

Housing minister Caroline Flint has confirmed that the government is considering a "mortgage rescue scheme" to protect the income of homeowners who lose their jobs. The measure is one of several ministers are examining in efforts to reverse the slump in the housing market. Among the most likely schemes is the temporary suspension of stamp duty for first time buyers on homes of up to 250,000 pounds - a measure that is being recommended by the property industry and also happens to be official Tory policy.

COUNCILS PREDICT 5M WAITING LIST FOR SOCIAL HOUSING

The Local Government Association has warned that the social housing waiting list could double over the next three years to five million people. The reduced availability of mortgages and the rising price of housing have pushed homes out of the reach of first-time buyers, raising demand for social housing. However, almost half of all heads of housing associations surveyed by the LGA claim they will be unable to cope. To ease the strain, the LGA is calling for councils to be allowed to borrow in the same way as housing associations so that they can build more homes for rent.