South Lakes affordable homes lying empty due to banks hording tax-payers cash- says Farron

MP Tim Farron has received a Parliamentary written answer which shows that affordable homes in South Lakeland continue to lie empty despite a housing crisis.

The current financial crisis has led to banks restricting mortgage lending for properties with local occupancy agreements and other affordability restrictions. However, until the flow of mortgage finance is restored, and mortgage terms eased, the industry will not be able to raise housing output significantly.

Mr Farron has tabled a motion in the House of Commons urging the government to instruct all mortgage lenders who have received a taxpayer funded bailout, to offer mortgages on affordable homes on the same basis as other properties.

Mr Farron's appeal comes after a parliamentary question tabled by the MP revealed that there are almost 800,000 empty dwellings in England with over 130,000 of these being in the North West. It is estimated that around 2,000 of these will be in South Lakeland, with some of them being recently built 'affordable homes'.

Commenting Mr Farron said:

"At a time when so many people are struggling to gain a foothold on the housing ladder, it's disgraceful that this government has allowed over 130,000 houses in the North West to be left empty.

"Unfortunately for first time buyers, the behaviour of the banks has been just as bad. When mortgage lenders start demanding deposits of between 20-30% on a property worth £70,000, these houses become instantly unaffordable.

"With the taxpayer now holding a majority stake in many of the nation's biggest lenders, Gordon Brown should step in and instruct the mortgage lenders to lend to the people who need credit the most."