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December 2009

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Dec 09 Update
Item MORTGAGE REPOSSESSIONS (PROTECTION OF TENANTS Etc.) BILL 2009
Details This is a Private Members Bill designed to protect persons whose tenancies are not binding on mortgages and to require mortgagees to give notice of the proposes execution of possession orders. Announcing the introduction of the Bill on 16 December 2009, Dr Brian Iddon MP said: “The Protection of Tenants (Mortgage Repossession) Bill will give private tenants rights if their landlord defaults on their mortgage and the lender takes steps to repossess the property. Currently, if a landlord is renting out a property and they have not informed the lender that it is being let, when repossession notices are sent out, they will not be addressed to the tenant. This means the tenant may be totally unaware of any repossession order until a court summons is received or the bailiffs arrive. This leaves the tenant potentially homeless. It is very difficult to collect accurate figures on this problem; for example, only if the tenant presents to the local authority as homeless would such data be registered. Government figures suggest that, in 2009, 2,000-3,000 people have been affected. However, advice agencies such as the Citizens Advice Bureau suggest the figure is much higher. Legislation in this area is urgently needed. The Government have already undertaken a consultation on this issue and I have support for the Bill from Shelter, Crisis, the Citizens Advice Bureau and the Chartered Institute of Housing. I will be campaigning very hard to ensure that my Bill passes into law before the General Election so we can start protecting private tenants as soon as possible”. The Housing Minister John Healey, indicated the Government’s support for the Bill: “I welcome Brian Iddon's decision to use his Bill to close the gap in legal protections for tenants whose landlords face repossession and I will work with him closely on this important legislation. These families can end up with little or no notice that they have to move when the home they live in is taken away. I am committed to seeing the law changed to give them new protection. Since the downturn began, over 330,000 families have benefited from the comprehensive range of Government support available to help them avoid losing their homes - including free debt advice and legal representation in court to help with mortgage interest payments and, for the most vulnerable families, the Mortgage Rescue Scheme. Dr Iddon's Protection of Tenants Bill will offer much-needed breathing space for tenants so they don't face being thrown out onto the street and have time to find a new home”. For the background to the Bill, see the useful Parliamentary Briefing Note entitled ‘Mortgage Repossession: Rights of Tenants': http://www.parliament.uk/commons/lib/research/briefings/snsp-05019.pdf The Bill follows the Department for Communities and Local Government Consultation on Lender Repossession and Protection of Tenants in August 2009: http://www.communities.gov.uk/publications/housing/lenderrepossessionconsult For practical advice, see the Shelter Website: http://england.shelter.org.uk/get_advice/eviction/repossession_by_a_landlords_lender The Bill, which has not yet been printed, is due for its Second Reading in the House of Commons on 29 January 2010. You can follow its progress on the UK Parliament Website: http://services.parliament.uk/bills/2009-10/mortgagerepossessionsprotectionoftenantsetc.html
Item HOUSING MINISTER EXTENDS DEBT ADVICE HELP FOR HOMEOWNERS
Details Over the last 12 months or so the Government has introduced a raft of financial and advisory proposals aimed at assisting homeowners in difficulty with their mortgages. Most recently for example, on 8 September 2009 the Government launched a new Mortgage Help Website: http://mortgagehelp.direct.gov.uk/ On 15 December 2009, Housing Minister John Healey extended the Government’s free advice for families facing the threat of repossession with an extra £4M to ensure the lifeline continued into the New Year. The Government funding will go to debt advice agencies as well as 80 court desks across the country. See: http://www.communities.gov.uk/news/corporate/1413592