Councils answer housing market SOS

In a letter to The Times, a number of council bosses claimed regeneration plans were in jeopardy unless new mortgage capacity is made available. The councillors are seeking to borrow £2bn from the public works board to offer mortgages cheaper than the private sector. However, the Treasury is thought to dislike the idea, and critics have suggested the cost of defaults would be passed on to taxpayers. The councillors hope the matter will be discussed in a Cabinet meeting in early September, when the Government is expected to draw up a rescue plan for the housing market. However, Treasury ...