Tenant protection needed as repossession risk rises

5.04.00pm GMT Sun 1st Jun 2008

More must be done to protect vulnerable housing tenants in Wales, Welsh Liberal Democrats warned today. Party leader Mike German AM warned that repossession orders have risen by 26% in Wales in the first quarter of the year, and that the credit crunch meant that figure was only likely to rise in the coming months.

He said: "This is a growing problem. We already talk about an affordable housing crisis in Wales - but there is a growing crisis facing many tenants in rented accommodation as the credit crunch means that more and more houses are being repossessed.

"Landlords who took out buy-to-let mortgages in the good times are feeling the pinch now - but the real losers are the tenants who can face eviction through no fault of their own."

The warning comes as a US equity house has announced it is to take a major stake in Bradford & Bingley - the largest buy to let mortgage provider in the UK.

Mr German added: "We need to see more action from the government when it comes to helping those at risk in Wales. For example, I want the Assembly government to be lobbying for a protocol which would require a court to be satisfied that lenders and borrowers had taken all the relevant steps before possession was awarded. We need to make sure that making people homeless is the final straw.

"We need to ensure that advice is available for people at the earliest possible opportunity - not when it's too late to do anything about it."

Housing spokesperson Peter Black AM added: "We also need to see firm plans for the government to meet its pledge on additional affordable housing. These are uncertain times in the housing sector, yet the government has shown no indication of even having a plan to deliver the 6,500 affordable homes pledged in the One Wales agreement.

"When the Minister came before committee it was clear that she wasn't even aware of what is being done at present, let alone what is going to happen in order to achieve this target. Wales deserves better."