Although there is a dearth in availability for council house mortgages right now, that may change as more cities make an effort to make this housing more accessible. Although it takes time to get a council house mortgage, new homes are now being built that will help shore up the council house mortgage market.Chief executive Jacqui Watt said: “Tenants struggling to pay so-called affordable rents are feeling the squeeze and there is a real danger that the government proposals will result in rents rising higher and faster than in the past. If the net result of these proposals is that housing associations can’t borrow the additional finance needed from banks, the supply of new, affordable rented housing - which is already low at 5000 new units per year - will fall even further. How does that square with the government’s stated intention of increasing housing supply?”A Scottish Government spokesman said: “To build the social houses that Scotland needs, we have to achieve much better value for public funds. It’s wrong to say that our proposals mean that rents must rise further than already planned. Our proposals are based on what housing associations tell us they already plan to do. They are in very good financial health and well-placed to weather the credit crunch - in part because of very generous levels of government support.”
Related reading: Council House Mortgages
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