A new plan is in the works that may make the availability of council homes and council house mortgages strictly for those who are homeless. Critics are decrying this plan, stating that it spells disaster for the housing market, which is already in the depths of a major crisis. Council house mortgages are some of the most common to default and many wonder about the efficacy of allowing only the homeless access to these homes. However, those in favor of the plan are pointing out that the homeless population is rising and the defaults on council house mortgages and other loans has created a significant need for available housing. A government report on homelessness stated, “Local authorities reported significant concerns about meeting the needs of homeless households whilst also coping with demands from others in housing need.”The new plan should dramatically increase the availability of council homes. After a period of three years, most should be eligible to apply for a council house mortgage if they wish to do so.Stewart Maxwell, the Minister for Communities, said: “New housing across all tenures has been inadequate in recent years which is why we’ve proposed to increase the supply by 40%, to at least 35,000, by 2015.”
Related reading: Council House Mortgages
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