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Tenants to benefit from enhanced protection

Tenants to benefit from enhanced protection

Category: Money

Updated: 05/08/2009
First Published: 05/08/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Tenants who were previously at risk of being kicked out of their rented properties could be set to benefit from further protection, under new proposals.

Currently, tenants can face immediate eviction from a property if the owner, who has let their home without the consent of the lender, runs into arrears and faces repossession.

Many homeowners decide not to inform their lender when letting out their property to keep down the rate on their home loan.

Under the new proposals, people renting from unauthorised landlords would be entitled to a stay in the property for two months after the house is repossessed, giving them time to organise alternative arrangements

The consultation paper by the Communities and Local Government said that while improvements have been made to the system – an effort has been made to extend the notice given to occupiers that a possession hearing is to take place – there is still a fundamental gap in protection, with the risk that some may still be evicted at short notice.

"It is wrong that through no fault of their own, these families can find themselves out on the street with no prior warning," said Housing Minister, John Healey.

"That's why I want to change the law to give new protection to those tenants who have no rights when the property they live in is repossessed. This will give them much needed breathing space to find another home."

Echoing the sentiments expressed by Mr. Healey, Keshav Thukaram, managing director of Smartlandlord.co.uk, commented: "We welcome this important step to stabilise the private rented sector, to ensure that tenants don't fall victim to mismanagement by private landlords."

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