Real help for those at risk of losing their home
21 April 2009
Tens of thousands of people have been helped to avoid losing their homes by a government emergency service which provides last minute help to people facing eviction or repossession.
Statistics released today show that each month more than 2,800 people in England and Wales who are at risk of losing their home benefit from free, immediate legal advice and representation in court, thanks to the Housing Possession Court Duty Scheme, run by the Legal Services Commission.
Legal advisers are available on days when repossession cases are heard and are available to anyone, regardless of their income, who has a hearing listed on that day. Almost 34,000 households across England and Wales used this service last year, an increase of more than 5,000 compared to 2007. Since April 2005, more than 100,000 households have used the service.
Justice Secretary Jack Straw said:
‘The government is taking urgent action to get real help to those worst hit by the credit crunch. Losing a home has a devastating impact on people’s lives. New rules since November 2008 mean repossession should always be a last resort but, should the worst happen, we must make sure the right support is available.
‘Court duty scheme advisers do a fantastic job, often making a dramatic and very significant difference to preventing evictions at the 11th hour, but the more time an adviser has to prepare, the better the chance people have of keeping their homes. The best advice is still to get early advice, and avoid the distress of a court appearance altogether.’
Nineteen-year-old Beth (not her real name) was facing homelessness just weeks before the birth of her first child. She had recently split up with her boyfriend and was struggling to make ends meet on her carer's salary and fell into payment arrears on her housing bills. Beth said:
‘I was worried I wouldn't have anywhere to live with the baby. I didn't know what to do.’
Beth planned to represent herself at court but received help from a Housing Possession Court Duty Scheme adviser. Her adviser had her case adjourned that day, setting a date for the hearing some months later and relieving the threat of immediate homelessness. Her case was eventually successful and in addition she was granted housing benefit.
Now she is secure in her home, Beth says:
‘It’s all taken care of and I can look forward to bringing up my baby in my flat.’
Ms Elizabeth England, a solicitor with Turpin and Miller in Oxford, provides free legal advice at Oxford County Court as part of the scheme. She said:
‘This is a great source of last minute support for people in difficulty. I have advised and presented cases for a range of people: from a single parent with two children who had got into a muddle with her housing benefit resulting in rent arrears building up, to a family with £14,000 in mortgage arrears facing repossession.
‘In both cases we are able to keep the families in their homes while the arrears where cleared.
‘It is important that people realise however that a problem doesn’t need to get as far as court, and advice can be sought at a much earlier stage.’
The Housing Possession Court Duty Scheme is one of a range of government initiatives to help people in financial difficulty keep their homes. Other measures include:
- ‘Mortgage arrears pre action protocol’ - an agreement from mortgage lenders that taking someone to court will be a last resort. It sets out a number of steps lenders should take before they consider court action. These steps include communicating with the customer to try and reach a settlement.
- The ‘Support for Mortgage Interest Scheme’ helps with mortgage payments if you lose your job and are claiming certain benefits for more than 13 weeks.
- ‘Homeowners Mortgage Support’ will help homeowners keep their homes if they fall on difficult times due to the economic downturn. Mortgage lenders representing 70% of the market have agreed a deal that will give breathing space to customers who have suffered a temporary loss of income, perhaps because they have had overtime cut or hours reduced. Lenders have pledged to allow eligible borrowers to reduce their monthly interest payments for up to two years to help them get their finances back on track.
- The ‘Mortgage Rescue Scheme’ is designed to help vulnerable householders facing homelessness through repossession stay in their homes. This support allows eligible households to either sell a part share in their home and reduce monthly payments or sell their home and remain in the property as a tenant paying an affordable rent.
Notes to editors
- For more information about the Housing Possession Court Duty Scheme, or to arrange an interview, please contact the Ministry of Justice Press Office on 020 3334 3536.
- Anyone falling behind with their mortgage payments should contact their lender in the first instance. If the case is taken to court, legal advice should be sought as soon as possible. Free advice can be obtained from Community Legal Advice (phone: 0845 345 4345).
- The number of ‘acts of assistance’ given by Housing Possession Court Duty Schemes funded by the Legal Services Commission in England and Wales has risen steadily since 2005. The figures are:
- 2005-06: 12,031
- 2006-07: 27,562
- 2007-08: 30,597
- 2008-09: 30,872 (first ten months).
The figure for calendar year 2008 is 33,768 households assisted.
- The Department for Communities and Local Government fund a similar service in up to 60 courts across England. A typical Housing Possession Court Duty Scheme is successful in preventing immediate repossession in 85% of cases when people attend court. In a written answer on 4 February this year Housing Minister Iain Wright MP told Parliament: ‘Government have also provided additional funding for advice services. Last year CLG funded 40 court desks that provide free legal representation at repossession hearings and are successful in 85% of cases where people attend court.’ (Hansard, 4 February 2009: Column 1285W).
Sign up for news updates
Enter email:
