Renters to get Greater Security from Landlords

Renters who are living in property owned by landlords who are not financially sound may well get better security if their homes are repossessed under new proposals.

The new regulations suggest that renters will be allowed to stay in a let property for two months following repossession, if their landlord did not inform their bank that it was a let property.  Under current legislation, banks can evict tenants following repossession.

It is suspected that there are many landlords who have not informed their banks that they are letting a property out to achieve cheaper buy to let mortgages. 

Housing Minister, John Healey, said: "It is wrong that through no fault of their own these families can find themselves out on the street with little prior warning.  That is why I want to change the law to give new protection to those tenants who have no rights when the property they live in is repossessed. This will give them much-needed breathing space to find another home."

Not all banks will evict tenants in a repossession scenario though because often the rental income is a better financial propisition than the sale income from the property.

Related: Essential Guides | Buy to Let Mortgages