Lib Dems: Ban no-fault evictions over Christmas period as 3,500 face being made homeless

Embargoed until 22.30 Sunday 17 December

The Liberal Democrats have called on the government to bring in an emergency ban on no fault evictions and banks repossessing people’s homes over the Christmas period.

It comes as analysis by the party reveals an estimated 3,500 families are set to be threatened with homelessness over the Christmas holiday period (23rd December to 1st January). Of these, an estimated 560 are facing the threat of homelessness due to a no-fault eviction. 

It means an average of 349 families every day face becoming homeless every day over the Christmas period. The research is based on government figures showing the number of households who faced the threat of homelessness during the same period last year.

2,120 households have seen their home repossessed so far this year, separate figures from UK Finance show, amid soaring mortgage rates. For the typical homeowner coming off their fixed rate deal, monthly mortgage repayments are projected to increase by around £240, a shocking rise of 39%.

Leader of the Liberal Democrats, Ed Davey said:

“Rishi Sunak and his cabinet are totally out of touch with people facing soaring rents and mortgage bills this Christmas. Families are having to live with the threat of losing their home looming over them every day over the festive period.

“Renters and homeowners shouldn’t have to face losing their homes through no fault of their own. We need an emergency ban on banks repossessing people’s homes over the Christmas period, and the long-promised ban on no-fault evictions must be brought in now without further delay.

“No one should be left out in the cold this winter. The Conservative Party have crashed our economy with all their chaos, the British public should not be left to pay the price.”

ENDS

Notes to editor

We have estimated the number of people threatened with homelessness over the Christmas period using DLUHC data covering the period between October and December 2022. 31,800 households were threatened with homelessness during the 91 day period, equivalent to 349 a day. Of these, 5,120 were threatened with homelessness after being served a Section 21 no-fault eviction notice, or 56 a day.

UK Finance’s latest figures on repossessions can be found here.

According to Rightmove, the current average mortgage rate for a two-year fixed, 85% loan-to-value mortgage is 5.66%.

The Bank of England’s latest Financial Stability report, which gives an updated estimate of increases in monthly mortgage repayments. For the typical owner-occupier mortgagor rolling off a fixed rate between 2023 Q2 and the end of 2026, their monthly mortgage repayments are projected to increase by around £240, or around 39%.