Travellers offered £50,000 interest-free council loans to buy sites

Published 08th Apr 2010

Travellers are being offered interest-free loans funded by the taxpayer to buy their own land.

The new project will give groups of travellers 'mortgages' of up to £50,000 to buy acres of fields on which to settle.

They will then repay the loans over a timespan of their choosing, without paying a penny in interest.

The council behind the scheme insists it will solve the problem of finding suitable sites for official gipsy pitches.

A council leaflet encourages travellers to choose sites in built-up areas near schools, transport links and shops.

But campaigners have slammed the move as an 'insult' to struggling first-time buyers.

The project has been devised by Mendip District Council in Somerset, which says it needs to find 87 pitches over the next two years.

Officials have struggled to find suitable sites in the county and say council-run sites are expensive to build and maintain.

They are encouraging travellers to approach landowners to discuss whether they would be interested in selling their fields.

They then apply for planning permission with the council, which will provide sums of up to £50,000 to buy the land.

The travellers and council then set up a 'Community Land Trust' in which they share ownership, with the travellers permitted to live on the site indefinitely.

Outlining the controversial scheme yesterday, council housing project officer Lynden Clarke said: 'We're looking at creating small sites for four to six pitches, with a handful of families per pitch.

It's a win-win for all because it is very cost-effective from local authorities' point of view.'

She added: 'Travellers traditionally have very few tenancy rights, whereas with this scheme they will eventuellers-ally own the land and have a sense of ownership.'

But opponents said the council should be doing more to help firsttime buyers look for a home.

Matthew Elliott, of the TaxPayers' Alliance, said: 'These loans are an insult to many hard-working families who are struggling to get together the money to put down a deposit on a property.

'Singling out this one community for loans is grossly unfair, particularly if some do not pay their share in council tax and violate planning regulations. Local authorities need to be extremely careful about targeting resources at particular communities, as doing so can lead to understandable resentment.

'They should focus on cutting taxes so all taxpayers have a better chance to save and invest.'

But councillor Nigel Woollcombe-Adams said: 'Like other councils which deal with homelessness and unauthorised gipsy and traveller sites, these issues continue to create financial pressures.

'The Community Land Trusts offer excellent value for money, while supporting the needs of the travelling community.'

Maggie Smith-Bendell, a Somerset-based campaigner for travtworights, said: 'I think the Community Land Trust is a fantastic thing. It proves that we can work with the authority.'

It is understood the scheme will be available to any nomadic group.

The Conservative-run council says that after any deal is done, it will retain part-ownership of the land, meaning groups will not be able to continually make new purchases and move on.

Sites suitable for the scheme must not be protected, and any development must be as 'low impact' as possible.

Source: ' Daily Mail '

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