§ Baroness Jegerasked Her Majesty's Government:
What assistance is given from public funds to people threatened by the loss of their home through repossession; and what is the cost of providing alternative accommodation for families which become homeless in these circumstances.
The Minister of State, Department of the Environment (The Earl of Caithness)Possible forms of assistance include:
- (i) owner occupiers on supplementary benefit can normally have the mortgage interest element, plus a small amount to reduce the debt, paid directly to the lender;
- (ii) debt counselling is available from Citizens' Advice Bureaux and other bodies supported by public funds;
486 - (iii) in any court action, legal aid may be available;
- (iv) local authorities may acquire, by agreement, from defaulting mortgagors dwellings mortgaged to them, and offer a tenancy in return, or acquire dwellings by agreement for sale including sale on shared ownership terms.
When repossession is certain, people may be found accommodation by local authorities under the homelessness legislation. The cost of this to public funds will depend on the person's financial situation and the nature of the accommodation provided.