CML: Tenants bill could become 'rogue charter' to delay possession

There is concern among mortgage lenders that a bill designed to give better protection to unauthorised rental tenants could turn into a "rogue's charter" to delay repossession.

The Council of Mortgage Lenders (CML) has given its full support to the aims of the parliamentary bill, which is designed to protect tenants living in properties that have been purchased using a conventional residential mortgage rather than a specialist buy-to-let loan.

Under current regulations tenants living in houses for rent in Surrey, for example, are protected by tenancy agreements which mean that they will not have to move out at short notice if a mortgage falls into arrears.

However, in a statement published today (January 19th), the CML admitted that it was concerned that the current drafting of the bill could be used by landlords to delay repossession.

A statement by the organisation indicated: "We support the aims of a bill currently being rushed through parliament.

"We want a solution proportionate to the scale of the problem that does not have expensive, unintended consequences."

Article Date: 19/01/2010