New council could offer mortgages

Mortgages could be offered by Shropshire's new council in a bid to help kick-start the county's ailing housing market.

The move is designed to help people unable to get mortgages from traditional lenders and who are finding it almost impossible to get a foot on the property ladder.

The proposal has come from Councillor Alan Mosley, Shropshire County Council Labour group leader, and will be put to Friday's meeting of the authority in a formal motion.

He is calling for a report on whether mortgage lending and other housing initiatives are feasible to be presented to the council task force which has been set up to find ways of helping Shropshire families and businesses through the economic crisis.

The standing committee of nine county councillors has already been ordered to review the support provided by the authority and other agencies and to decide what additional services can be provided to lessen the impact of the deepening recession.

Councillor Mosley says in the motion that the Government had announced it would lift restrictions preventing councils from building more homes, possibly by allowing them to set up construction companies or providing short-term finance for stalled public-private sector building programmes.

He said today: "I do think the Government is showing real intent to change the rules for us to provide much needed housing.

"Housing is a key priority for the new council and I expect the motion to go through with strong support."

He added that he believed easing restrictions on authorities offering loans would be of great benefit in stimulating the housing market and aiding those struggling to move on to the property ladder.

He said: "Hence we request that officers investigate the potential for adopting such initiatives in Shropshire and that they then report to the standing committee on the economic recession, for them to make recommendations to the implementation executive."