Currently, if a landlord has not taken out a buy-to-let mortgage and has not received a 'consent to let', tenants are often unable to discuss their situation with those taking repossession action against their home.
The reason for this is that the lender does not know about these tenants and because the court is unable to take account of their circumstances.
These tenants can then find themselves with little or no time to find a new place to live.
Ministers believe it is only fair that such tenants have more opportunity to request a delay in repossession action so they have time to find appropriate alternative accommodation.
-- Advertisement --
The Government has already put in place a comprehensive range of support for homeowners to avoid repossession, from free debt advice and help with mortgage interest, to special backstop help like the Mortgage Rescue Scheme for those families most at risk.
The Council of Mortgage Lenders have reduced their repossession forecast for 2009 by more than a third - from 75,000 to 48,000.
The Mortgage Repossessions (Protection of Tenants etc) Bill, tabled by backbench MP Dr Brian Iddon, received its second reading in the House of Commons, and aims to change this. It will allow judges to delay repossession of a property by up to two months, giving tenants the time they need to find a new home.
Housing Minister John Healey said: "The comprehensive range of support we've put in place for homeowners has helped keep repossessions at nearly half the rate of the last recession. But I am determined that help is available both for those struggling to pay their mortgages, but also for those tenants who may have little or no notice that the place they call home is at risk.
"That's why the Government is backing Brian Iddon's Bill, which will ensure that tenants are not subject to the distress and disruption of short notice eviction and will allow judges to have the power to stop tenants from being thrown out onto the street and instead offer them breathing space to find somewhere else to live.
"I will continue to work directly with Dr Iddon to ensure this important legislation is passed, closing a gap in the law so tenants get the protection they need and deserve."
(CD/GK)
