Unscrupulous lenders are adding to a "looming crisis" of affordability in Trafford, the council has warned.
Bernice Garlick, the Greater Manchester council's outgoing executive member for housing, said tenants are being targeted by firms which encourage them to exercise their right to buy without checking whether they can repay the loans.

Some are offering tenants extra cash for holidays and cars when deals are struck, she said.

But buyers who later default on mortgage payments have to hand over their homes to the lender, which may then rent them at more than £100 a week to those desperate for somewhere to live – while council tenants next door pay £45.

Garlick said: "The private rents may be above the housing benefit ceiling, so the tenant just has to eat less to make up the difference.

"What the loan firms are doing is legal but they are not bothered whether people can repay because they gain a valuable asset either way."

Unlike many northern councils, Trafford is facing rising demand for social housing and land values are soaring.

"There is very little affordable housing available," said Garlick.

The council loses 200 homes a year through right to buy, but only 38 housing association homes are being built. Under a choice-based lettings scheme, one council home attracted 100 bids.

Nursing homes are also selling up and marketing their land, losing valuable bed spaces.

Source

Housing Today