"Credit Crunch" Housing Crisis Predicted

4.50.02pm GMT Sun 13th Jan 2008

The "Credit Crunch" could still have a major impact on Housing Markets in Cambridgeshire

As more people lose their homes as mortgages become unaffordable, Liberal Democrats claim there is a crisis brewing in the provision of social rented housing.

The number of families made homeless and reliant on local authority support following mortgage arrears has risen 28 per cent since 2003.

The Council of Mortgage Lenders estimates that up to 45,000 homes will be repossessed in 2008, with hard-up families going to their councils in last recourse.

But the building of new homes for social renting has fallen every year for the past ten years. Those in financial trouble have less and less to fall back on say the Lib Dems.

Jonathan Chatfield the Lib Dem's parliamentary spokesperson for South East Cambridgeshire explained:

"Sky-high house prices have forced many families to take on unsustainable mortgage debts and many are now finding themselves in arrears.

"But there is no safety net for those caught by the housing crisis. Under this Government the number of houses for social renting has fallen, resulting in waiting lists for social housing soaring to over one and a half million.

"In the South East Cambridgeshire constituency there are around 6,000 socially rented homes out of a total of 40,000 households. The draft East of England Plan calls for a 30 per cent target for socially rented homes to meet normal demand, so we are well short of what is needed.

"With the economy heading into choppier waters, thousands more families are in danger of facing problems in paying their mortgages. Without Government action now we are facing a crisis in the demand for social rented housing."