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Government urged to change law to protect private tenants evicted when landlords default on mortgages
The government was today urged to introduce greater protection for the *rising number of tenants who are evicted because their landlords default on their mortgages.
Four housing charities have joined forces to publicise the plight of people in the private rented sector who are being made homeless because their property is repossessed.
Shelter, Citizens Advice, Crisis and the Chartered Institute of Housing said there had been a steep rise in people being evicted because their landlords had failed to pay their mortgages, despite tenants keeping up with their rents.
A survey carried out by Crisis found 60% of its advisers had been approached by people who had lost their home in this way. In some cases, people came home to find the locks on the property had been changed and their belongings were out in the street, and in other cases people were refused access to their things or were allowed into their home only briefly to get a few items.
In one instance a family had to spend the night sleeping in their car, before being moved into emergency hostel accommodation because their rented home had been repossessed.
The Council of Mortgage Lenders has predicted that 75,000 homes could be repossessed this year, and the charities estimate that more than 8,000 of these could be buy-to-let properties. More could be homes bought with residential mortgages which are now being let to tenants.
They said the tenants of these properties were the "forgotten victims of the repossession crisis" and called for the law to be changed to allow courts to defer repossessions to enable tenants to find new accommodation.
The charities have written to MPs urging them to sign an Early Day Motion calling for the law to be changed to tackle the problem.
The group added that more also needed to be done to make tenants aware of repossession proceedings, such as getting the courts to send notices that were clearly marked "to the tenant" of a property, in addition to notices that are currently sent "to the occupier" by mortgage lenders.
As the law stands, most tenants have none of the legal rights that usually protect people in rented properties from *losing their homes at short notice.
Leslie Morphy, chief executive of Crisis, said: "At a time when many people are focused on homeowners, we risk forgetting that tenants of private landlords are extremely vulnerable to the recession.
"It is outrageous that the first time some people discover they are going to lose their home is when the bailiffs ring the doorbell. Tenants need legal protection to ensure that they at least have reasonable time to find somewhere else to live. The alternative too often can be homelessness."
The Council of Mortgage Lenders said many lenders would consider continuing a tenancy if a landlord got into difficulties, with the tenant paying their rent directly to the lender for the period of the tenancy.
But it said in some cases, landlords might be renting out a property that had an owner-occupier mortgage on it, without the lender's knowledge.
The CML's director general, Michael Coogan, said: "Good tenants should not be disadvantaged, and nor should lenders, by the irresponsible behaviour of a small minority of landlords. We look forward to working with the government and advice agencies on effective measures to help the modest number of tenants affected."
A spokesman for the Department of Communities and Local Government said the government was determined to protect tenants.
"From 6 April, tenants will get the maximum possible notice of possession proceedings that may affect their home, meaning that, rather than two weeks at present, they will get nearly two months to make alternative arrangements," he said. "We are looking to see what more help we can provide for tenants, be that legislation or influencing lender behaviour. In the first instance, it is vital that landlords struggling with their payments contact their lender."
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