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A return to the London-wide authority providing mortgages could be on the cards. London mayor Boris Johnson told The MJ he is considering the option of helping first-time buyers in the same way as the GLC did in the 1960s. Mr Johnson said: 'We are looking at all of that. In the current economic climate I do think there's a big role for us and the Homes and Communities Agency to help to solve their problems. ‘The mere fact of the fall in the housing doesn't make things any easier. It's a huge opportunity for us to come up with some major schemes. There are no disasters without opportunities.' One option could include buying up unsold new homes for council tenants. His comments were followed by a call from the Council of Mortgage Lenders for the Government to free up funds for housing loans. Government targets for more homes now look impossible after building firms announced thousands of job losses. Bosses say they are desperate for liquidity to bring in new buyers. In response, housing minister Caroline Flint this week announced further £270m for the Housing Corporation to deliver an additional 3,800 homes for social rent and 1,500 shared ownership homes. She also announced a new national clearing house where house builders can approach the Housing Corporation with robust proposals to sell their unsold stock. Responding to the minister's proposals, London Councils' executive member for Housing, Cllr Jamie Carswell said the capital's 32 boroughs were ready to step in. He said: ‘Local authorities are also eager to play their part in delivering the homes vital for Britain's future prosperity. Their innovation will be vital if the government is to deliver on its ambitions and build successful, sustainable communities.'

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Boris set to review mortgage rescue plan for London

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