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Generation Rent has sent an open letter to mortgage lenders urging them not to evict tenants from the homes of landlords who have defaulted on their mortgages.
The tenants’ group expects even more landlords to have their homes repossessed this year, following sharp interest rate rises, and believes lenders have a moral obligation to ensure evicted tenants can stay in their homes.
10% behind
Earlier this month, UK Finance reported that lenders repossessed 440 buy-to-let properties in the second quarter of 2023, while a further 2,000 landlords are more than 10% behind on their balance.
Generation Rent chief executive Ben Twomey (main picture) says that without the same government forbearance given to owner occupiers, landlords behind on mortgage payments are at a higher risk of repossession – and there is nothing their tenants can do about it.
Generation Rent estimates that the upfront costs of moving for the typical private renter household is £1,700, which they must often borrow to meet.
Eviction is a very disruptive act with often severe consequences for the tenant that should be avoided wherever possible, says Twomey.
Tenant stress
“A no-fault eviction results in stress for the tenant, particularly when rents have been rising as they have been. Finding a new, affordable place to live can drag tenants away from their workplaces, families and schools.”
In the letter, he adds: “I would like to know what your institution is doing to prevent tenants from losing their homes if their landlord is repossessed, and if you have a policy of acting as or appointing a receiver of rent to allow tenants to stay in their homes and carry on with their lives.”
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