Tenants at increased risk of repossessions
06/08/2015
Tenants face being evicted from their homes through no fault of their own when their landlords get into mortgage arrears, according to a report from Citizens Advice.
Citizens Advice have published a new report called Renting in the Recovery, which shows that up to 6,800 tenants are evicted from their homes at short notice every year thanks to their landlords falling behind on their mortgage payments.
Tenants in the private sector are often not protected if a landlord gets their house repossessed, and the report showed that sometimes tenants are unaware of any problems at all until the bailiffs show up.
Citizens Advice are now concerned that more landlords could be failing to make mortgage payments thanks to the looming base rate increase, leading to more tenants being evicted. Tenants whose landlords don’t have a buy-to-let mortgage or haven’t had agreement from the mortgage lender to rent out the property are at particular risk. Many tenants are unaware that they are entitled to a two month warning from their landlord if their property is being repossessed.
Gillian Guy, Chief Executive of Citizens Advice, said:
“Thousands of renters are being repossessed with little or no warning.
“Citizens Advice helped one tenant who was given only three days’ notice to leave his home when his landlord’s property was repossessed. As interest rates rise, there is a risk that more tenants will face repossession and the prospect of homelessness.
“Banks have an opportunity to help tenants whose landlords have the wrong mortgage by making sure they inform tenants face-to-face of their rights if they are at risk of losing their home.”
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Is There Still Loadsamoney In The Property Sector?
Comedian Harry Enfield has shown a prowess for property investment on a par with some of his more popular comedy character which included the famous 'Loadsamoney' character which made his name. It has been reported that Enfield has sold his Notting Hill home for a staggering £12 million pounds, netting him a profit of £10 million on his original £2.5 million outlay, in just 9 short years. So...
Read MoreFirst time buyers compromise to climb the ladder
First time buyers are making compromises in their lifestyle to get onto the property ladder, according to research by Alliance & Leicester Mortgages.Over half (51 per cent) of first time buyers are prepared to sacrifice their social lives to buy a house, citing living close to work as the most important factor when deciding where to buy.Another third (34 per cent) said good transport links would a...
Read MoreWhy did investors chase property prices to ridiculous heights?
If you look back at the summer of 2007, commonly referred to as the peak in the UK property market, it shows a market which was flying high with not a cloud in the sky. Despite the fact that many experts believe that property prices in the UK were substantially overvalued, the headlines talked of a boom in the sector and investors and homeowners were desperate for a slice of the action. So why did...
Read MoreStealth taxes to hit the property sector
In a move which is as much about protecting tenants as it is about raising additional funding, the UK government is currently considering a scheme which would see all landlords added to a national register. While presented as a way of highlighting rogue landlords and potential fraudulent activity, the £50 charge per landlord would raise a significant amount of money for the UK government without...
Read MoreWhy do Land Registry figures differ from property surveys?
The Land Registry today issued data which indicates that UK house prices fell by 0.6% in March, which is well out of sync with recent property surveys from the Halifax and Nationwide. Indeed the annual rate of growth in the UK property market, according to Land Registry figures, was just 7.5% compared to the 10% figure confirmed by the Halifax and Nationwide. So why do the figures differ so marked...
Read More