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Councils have been given a key role in the frantic bid to prevent the collapse of the housing sector. Measures announced by the Treasury and CLG to build more homes and support buyers, totalling a massive £1bn, came with the admission they are likely to be an interim package. The aim is to keep the housing industry going so regeneration does not stall in deprived areas, keep job losses at a minimum, and reduce the number of home repossessions to take the pressure off council house waiting lists. The Homebuy direct shared equity scheme will be widened, at a cost of £300m, to enable 10,000 first-time buyers currently frozen out of the mortgage market to get on to the property ladder. Income support for vulnerable homeowners will become available much earlier, and a £200m fund will be created to prevent 6,000 home repossessions. A £400m boost has been given to social housing providers to deliver 5,500 more homes. The new money has been created by bringing forward £700m from Year 3 of the affordable housing budget, agreed in the Comprehensive Spending Review. Councils will take the lead role in assessing people for mortgage rescue, and work with housing associations to increase local supply of affordable homes. And regional development agencies have been given a critical role to keep regeneration on track. But a CLG spokesman said: ‘This is far from over – there's more to come.' Richard McCarthy, the CLG's director general of housing and planning, admitted there was ‘a complex situation out there' and that the core housing team was meeting weekly. He said: ‘The relationship between agencies is really important. It's about central government working with its agencies and them working well with stakeholders on the ground. ‘It's in our collective hands to have an early impact here.' All eyes will now be on the pre-Budget statement due to be delivered by chancellor, Alistair Darling, in the autumn. But talk of councils re-entering the mortgage market was talked down. Mr McCarthy carefully worded his assessment. Local authorities are already allowed to offer mortgages using prudential borrowing limits. It's a decision for them to make within funding and borrowing limits,' he said. The Chartered Institute of Housing said the measures ‘offer important support for the construction industry, first-time buyers and some of the most vulnerable households facing repossession'. But Cllr Paul Bettison, the LGA's housing spokesman said: ‘The reality is that the Government is only really able to scratch the surface of a £400bn market. The money made available will only help a small number of people. The proposals will help around 20,000 families at a time when there are four million people waiting to get a council house.' Also see the Localgov.co.uk editor's blog

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Key role for councils in £1bn boost for housing

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