Home repossessions “Nightmare before Christmas”

Guildford Liberal Democrat Candidate Zöe Franklin calls for an emergency Government ban on repossessions and evictions over the Christmas holiday period.

Latest figures show a marked increase in people at risk of seeing their home repossessed, with 3,680 mortgage possessions claims in the courts between July and September. That's up 30% on the same period last year.

"Ticking time bomb"

Lib Dem research shows every day, nearly 3,500 mortgage borrowers are coming to the end of their fixed rates, and facing huge rises in their repayments as they're forced to switch to a new mortgage deal.

That means more than 36,000 households across the country will see their mortgage bills hiked by New Year's Eve.

The Liberal Democrats are also calling on the Government to immediately bring in its long-promised ban on no-fault evictions to protect renters, along with an increase in housing benefits and a moratorium on evictions based on rent arrears to protect those facing soaring rental prices.

Zöe Franklin, Liberal Democrat Spokesperson for Guildford warned the government must act now, saying no one should face losing their home over Christmas because the Conservatives crashed the economy.

"Government must fix the mess it created.

"Too many families in our area are facing a nightmare before Christmas, with monthly mortgage and rent payments spiraling because of the Conservative Government's disastrous "mini budget". The anxiety of eviction hangs over far too many people's heads. The Government must act now and fix the mortgage mess it created."

The Liberal Democrat proposals would include:

• a temporary ban on banks repossessing people's homes over the Christmas period
• a Mortgage Protection Fund to support homeowners hardest hit by soaring mortgage prices.

Liberal Democrat Leader Ed Davey added:

"Jeremy Hunt must act now before it's too late, by bringing in a temporary ban on home repossessions and a mortgage rescue fund to support those hardest hit. The government must also finally bring in its long-promised ban on no-fault evictions to protect renters at risk of homelessness this winter."

22nd December 2022

Notes to Editors:

Data on mortgage possession warrants, mortgage repossessions and tenant evictions is here.

UK Finance data shows that 600,000 fixed-term mortgage deals will expire in the second half of 2022, with those mortgage holders usually moved to much higher Standard Variable Rate mortgages. Averaging 3,300 a day, this suggests that roughly 36,300 will see their fixed-rate deals end in the 11 days between today (Wednesday December 21st) and December 31st.

In November, the Bank of England said that a typical mortgage holder in this group would face an increase in mortgage payments of around £3,000 a year (Monetary Policy Report, p. 53).

A temporary ban on home repossessions was brought in during the Covid pandemic, but was lifted in May 2021. Banks also collectively agreed last year not to carry out any repossessions over the Christmas period.

The Liberal Democrats are proposing a new Mortgage Protection Fund, which would provide temporary grants to those most at risk of repossession - homeowners on the lowest incomes and those seeing the sharpest rises in mortgage rates. Anyone who sees their mortgage payments rise by more than 10% of their household income would get a grant to cover the cost of that rise for the next year, up to a maximum of £300 a month.

The Liberal Democrats are also calling on the government to urgently bring back pandemic-era protections for renters, including:

• An immediate ban on no-fault evictions
• A moratorium on evictions on grounds of rent arrears, unless arrears exceed 6 months. This measure was in place for 6 months in 2020-21.
• Extend the mandatory notice period given by landlords from the current 2 months to 6 months. This was in place for 18 months in 2020 and 2021.