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Financial difficulty - Housing finance system is flawed
18/06/2008 18:08:03

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  Financial Difficulty
Financial difficulty - Building societies report slump in addition to banking woes
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Mortgage costs are sky-highThe head of the Local Government Association (LGA) has criticised the government for its "micro-management" of the housing finance system.

Sir Simon Milton has suggested that the management of housing currently runs under "outmoded ways of thinking", which give little or no benefit to residents.

In addition, he also explained his belief that revenue accounts should be scrapped as they restrict the flow of funding streams at the local level.

Speaking at the Charted Institute of Housing's (CIH) annual conference, he said: "Let the message go out to central government that increasing central control won't work.

"Stop micro-managing the housing sector and allow councils and housing associations, residents and tenants, and the entire housing sector to work together."

"Stop clinging to outmoded ways of thinking and let's build together a grown-up relationship which will create places we all want to live in."

At present, housing authorities are required to maintain a housing revenue account to run independently of the general fund, while the majority of their expenditure is covered by tenant rents.

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