| From Guardian: The government should intervene to save families under threat of repossession by offering to buy their homes, the Liberal Democrats said. A scheme allowing struggling homeowners to sell their property and rent it back should be part of a package of measures to prevent a repeat of the early-1990s housing slump. Vince Cable, the party's Treasury spokesman, said the likelihood of further falls in house prices over the next 18 months made decisive action necessary. He said tens of thousands of families could suffer unless plans were quickly put into action. He urged Jack Straw, the justice secretary, to give guidelines to the courts so that homes can be repossessed only in extreme circumstances.
The government is considering proposals to suspend stamp duty on homes worth less than £200,000 to help first-time buyers. The Treasury has also come under pressure to support an expansion of mortgage lending by underwriting new loans. Cable said underwriting such loans would be a risky exercise that would let the banks, who were much to blame for the crisis, off the hook..... Full Article: Source
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