As repossessions look likely to increase to 50,000 homes this year, LEAP has called on the Government to enact an emergency 'people's programme' to give people the 'right to stay'.
John McDonnell MP, LEAP Chair, said:
"Having bailed out the banks and underwritten bank lending, the Government must now lay out conditions to all mortgage lenders. The Government must also re-establish the role of Local Authorities in offering mortgages for part-and full-ownership.
"Before any repossession takes place, the mortgage lender must have already offered:
1) rescheduling the mortgage debts with lower payments
2) a payment holiday to allow customers to reconfigure their finances
3) a part-ownership / part-rented deal
4) mortgage conversion into social rent
This is essential to prevent the rush into court to repossess and for bailiffs to be mobilised.
"To implement these policies, the Government cannot rely on exhortation alone. It must force this agenda through using its ownership of banks, places on the boards of banks, or by statutory legislation."