The “credit crunch” has left many landlords struggling to meet their mortgage repayments but new measures outlined by the Government aim to protect tenants at risk of losing their homes in cases where their landlords are facing repossession.
Journalist Tina Clough Spoke to Belvoir Sheffield, the leading letting agent in Sheffield, to find out what sort of an impact this will have on the industry.
The Government’s new tenant protection proposals were unveiled this week by Housing Minister, John Healey.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of Sheffield properties to let, said, “The Department of Communities and Local Government has estimated that up to three thousand tenants will lose their homes this year due to the failure of their landlord to maintain their mortgage repayments.
This Government initiative will grant courts the power to allow tenants two months to find alternative accommodation in order to avoid the situation where families can find themselves out on the streets at short notice through no fault of their own.”
Many tenancy agreements are deemed unenforceable as they were done without the mortgage lender’s prior approval although so-called “unauthorised tenants” will also have the right to be heard at repossession hearings. Belvoir, the letting agents who specialise in property to let in Sheffield, welcomed the proposals.
Rick added, “The Government is keen for lenders to avoid repossession wherever possible and to look at other options such as appointing ‘Receivers of Rent’ to collect rent and manage occupied properties.”
