REPOSSESSION MUST BE THE LAST RESORT (Fiona Hall MEP)

Fiona Hall MEP <info@fionahall.org.uk>

REPOSSESSION MUST BE THE LAST RESORT

September 16, 2008 12:00 AM

North East Lib Dems called on the government to do more to help struggling homeowners in the region, at the national party conference in Bournemouth today.

Dr Vince Cable, Lib Dem Treasury Spokesperson, has put forward a three point plan - free and independent financial advice, a chance to negotiate the terms of their mortgage and an opportunity to become part-tenants by selling equity in their home - to ensure that repossession can only ever be a last resort free.

These steps could help those facing tough times in the North East, where figures from the Ministry of Justice reveal that the region has experienced a 24% change between the number of repossessions in the 2nd quarter of 2007, and the same time in 2008.

Fiona Hall MEP for the North East said, "It is unbelievable that in just one year, the number of people in the North East facing repossession has risen by a quarter - and really demonstrates that the region may be facing tough times ahead.

"Well considered policy is needed from the government to help ease the burden for the many people in the region who face repossession - as well as rising fuel, energy and food costs.

"Repossession should only ever be the last resort, and the government would be wise to use our proposals today as a blueprint to make sure that repossession rates do not rise even further in the coming months."

Newcastle Councillor Greg Stone, part of Newcastle City Council who have pioneered measures to help those struggling said, "There is considerable disquiet in Newcastle about the growth of mortgage repossessions brought about by reckless mortgage lending and the failure of the Government to adequately regulate the housing boom.

"We believe that Newcastle City Council is leading the way by taking positive steps to allow the council via the housing ALMO to step in and let affected residents remain in their homes as tenants of 'Your Homes Newcastle'.

"The Lib Dems are taking effective action to help address the housing crisis - Labour helped to create it, but are not helping to solve it."