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09/10/2009

Protection For Tenants On Way

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Proposals to protect unauthorised tenants where a property is being repossessed were published today.

Changes relate to a landlord letting out a property, without informing the lender, in breach of a mortgage agreement.

In the event of repossession of a property, any unauthorised tenants have limited rights. It is estimated that up to 300 households a year are affected

The Scottish Government is consulting on more protection for unauthorised tenants. If there is support for the measures, the Government will propose amendments at Stage 2 of the Home Owner and Debtor Protection (Scotland) Bill.

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Minister for Housing and Communities Alex Neil said: "It is important to consider if protection needs to be strengthened because this issue can mean misery for unsuspecting tenants, who find themselves in this unfortunate position through no fault of their own.

"However we of course need to balance our concern for ensuring such tenants have appropriate time to find alternative accommodation, and aren't made homeless, with ensuring that we don't unfairly constrain lenders' ability to repossess.

"The introduction of the Home Owner and Debtor Protection (Scotland) Bill to Parliament provides an opportunity to consult and bring enhanced protection into force quickly."

(GK/BMcC)

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