Holyrood vows action on repossessions

10/06/2009

Legislation to give greater protection to vulnerable homeowners

The Scottish Government has promised to take steps to make it harder for mortgage lenders to repossess homes.

The government pledge followed a report on repossessions by industry experts, recommending legislation in Scotland should require lenders to show they have considered every reasonable alternative to repossession, as is already the case in England.

It also follows The Big Issue's campaign to stop repossessions affecting thousands of vulnerable families.

Deputy First Minister Sturgeon, the health and wellbeing secretary, said: "With Scotland bearing the brunt of a global economic downturn, house repossessions are causing misery for many Scottish families.

"That's why we moved quickly, and set up this group asking specifically for recommendations that would help alleviate the distress caused by the threat of repossession. We will now take forward the group's recommendations to assist homeowners facing the threat of repossession."

Yet Labour said they had pointed the vulnerablity of those in Scotland last year, and accused the SNP administration "inaction" and demanded the government bring forward legislation immediately.

Cathy Jamieson said: "Scottish Labour first called on Nicola Sturgeon to provide homeowners in Scotland with greater protection against repossession in November last year."

"Nicola Sturgeon refused to act on our call for a Scottish equivalent of the pre-action protocols which impose a legal obligation on courts and lenders in England to make repossession a last resort."