I've just read a worrying article on BBC News Online about a big increase in the number of tenants being evicted from their homes after landlords defaulted on the mortgages.
Shelter revealed the extent of this problem and are campaigning to get the government to act:
According to Shelter's survey, 22 per cent of respondents, around 160,000 households - admit to struggling or falling behind with their monthly mortgage payments.
Five per cent, around 37,000, expect to be repossessed in the next six months.
I'm pleased the government is now looking at what can be done to help people in this terrible situation, but why didn't ministers gave any thought to this when the buy-to-let market was booming? This is a scandal.
This issue could become a major problem in Reading, given the fact that 20% of households currently live in rented accomodation and the large number of buy-to-let landlords in the town. I have been campaigning for some time to raise the profile of these properties and tenants.
I am very worried about the impact this could have on people renting locally.
Reading Borough Council already runs a deposit guarantee scheme which aims to offer greater protection to tenants in the private rented sector. I do not know however if this scheme can help residents who are threatened with eviction when their landlord defaults on a mortgage.
Our scrutiny investigations revealed that this scheme is growing in popularity. I am concerned however that the Council has enough resources to cope with demand which undoubtedly will increase during this recession.
I am makingurgent enquiries with officers to see what the Council can do to help and will update you on their response here.
I will also make sure the issue is included in our scrutiny review into private rented housing which could not have come at a better time.
Comments