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ACTION NEEDED TO REDUCE REPOSSESSIONS - WILLIAMS
November 7, 2008 1:25 PM
Liberal Democrat Shadow Secretary of State for Wales Roger Williams MP has today called for the Government to take action to stop the disturbing rise in repossessions as the housing market suffers across the UK.
Regional figures by court are expected to be announced in the next few weeks, after it was revealed last week that repossessions across the UK had gone up by 71% in the three months to the end of June. It was also reported earlier this week that many lenders are trying to push repossessions through before new court protocols are introduced on 17th November.
The Liberal Democrats have put forward proposals that if a bank wants to repossess there should be several options:
· The bank should provide financial advice
· The bank should see if it is possible to restructure the debt
· Allow people who can no longer afford to pay their mortgage to sell and rent back their property via local authorities or housing associations
The Government has agreed to change court protocols, but are refusing to make it mandatory for banks to follow them, sparking fears that they may just ignore the guidelines.
Commenting, Roger Williams said:
"Repossessions are of course bad for the individuals and families affected, but they are bad for the economy too. We need to make sure that repossessions only take place when no other alternative is available.
"Our measures are practical and could help stem the flow of repossessions which is putting further stress on the economy.
"Particularly given the Government support they have received, banks have a moral responsibility to their customers, but if they try and get round their obligations the Government must be prepared to force them to take these steps."
Mr Williams added:
"We are expecting regional figures in the next few weeks to show that all areas are being hit by the repossession epidemic. Without firm action to help those under threat we face a crisis.
"We do not expect people to get a free ride, but it is crucial for the future of the economy for every possible avenue to be explored before repossession.
"I hope the Government will look again at making these proposals mandatory to get us through these tough times."
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