Overview

The Mortgage Repossessions (Protection of Tenants etc.) Act 2010 protects tenants living in properties subject to mortgage repossession. It grants courts the power to delay possession orders and requires mortgagees to provide notice before evicting tenants.

Description

This Act introduces two key provisions:

Postponement of Possession Orders

Courts can postpone possession orders for up to two months upon a tenant's request if the tenant's tenancy is not legally binding on the mortgagee. The court considers the tenant's circumstances and any tenancy breaches when deciding. Postponement can be conditional on rent payments during the postponement period. These payments don't create a tenancy.

Notice of Execution

Mortgagees must give prescribed notice at the property before executing a possession order, with a prescribed waiting period before eviction can proceed. The Secretary of State sets the notice form and period via regulations, subject to the Lord Chancellor's consent and parliamentary oversight.

Government Spending

The Act doesn't directly allocate specific government spending. However, it may indirectly impact government spending through potential increases in support for tenants facing eviction or additional administrative costs for the courts and government agencies in managing the new processes.

Groups Affected

• Tenants: The Act provides greater protection against immediate eviction, offering a potential two-month delay to find alternative accommodation.
• Mortgagees: The Act introduces procedural requirements and potential delays in repossessing properties.
• Landlords: The Act's impact depends on the specifics of their tenancy agreements and their relationship to the mortgage process.
• Courts: The Act adds responsibilities to courts in considering tenant applications for postponements.

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