When the government took over Northern Rock, they took on its liabilities but left its assets, its mortgage book. Now the company is milking that for all its worth to pay back government money. The idea of effectively nationalising the housing stock which can’t be bought, makes perfect sense. Since their value to the bank after reposession is often very low or even zero, this doesn’t have to be too expensive. The implications, however, are far reaching: why would people then struggle to pay mortgages if they had this option. It takes us in the direction of the complete nationalisation of housing stock.
Gaby Hinsliff and Jamie Elliott
13th July, 2008
Homeowners struggling to meet their mortgage payments would be able to sell their homes to the local authority and rent them back as tenants under radical proposals being considered by the government to prevent the misery of repossession.
In These New Times 