Shelter Scotland has warned that home repossessions are set to soar without radical action.

At a conference on tackling mortgage repossessions today, Graeme Brown, Director of Shelter Scotland will commend Scottish Government proposals to support struggling home-owners and urge lenders to give the proposals their full and unequivocal backing.

Sheriff Court figures show that increasing numbers of people are facing losing their home in Scotland as the recession deepens. The statistics show a 20 per cent rise in mortgage actions taken to court in 2008-09 and a 50 per cent rise in decrees granted in the past year in Scotland [2].

According to Shelter Scotland, this is at a time when interest rates have never been lower, meaning that those who are just managing to hold on to their home may no longer be able to when rates increase again in the future.

Speaking ahead of the conference, Mr Brown said: 'The action the Scottish Government has taken to offer additional protection to homeowners [3] has been timely, especially with Scotland's flagship commitment to give everyone the right to a home by 2012 growing ever closer.

'It is right to scrutinise the proposals carefully. But the industry must not let that drift into carping about unnecessary regulation. Lenders grumbling that measures are excessive are as guilty of misreading the public mood as MPs complaining about tighter regulation of expenses.

'Radical action is needed at a time when more families than ever are losing their homes. Without that repossessions are set to soar.

'But improved safety nets at a time of recession, is only one part of the picture. We need to see this as a wake-up call and not just about picking up the debris of yet another housing market crash. As first time buyer numbers plummet protections for homeowners must be matched by protections for tenants.

'Unless we get a better balance in the housing market we are already sowing the seeds of the next boom and bust cycle.'

The conference provides the first major opportunity to discuss the recommendations of the Scottish Government's Repossessions Working Group published earlier this year and to hear about the Home Owner and Debtor Protection Bill on mortgage repossessions which has now started to go through the Scottish Parliament.

Speakers at the conference include: Alex Neil MSP, Housing and Communities Minister; Graeme Brown, Director of Shelter Scotland; Kennedy Foster, Policy Consultant Scotland, Council of Mortgage Lenders; Yvonne MacDermid, Chief Executive, Money Advice Scotland and Sarah O’Neill, Head of Policy, Consumer Focus Scotland.

Housing and Communities Minister, Alex Neil said:

'The Scottish Government recognises the responsibility it has to take prompt action where it can to help the Scottish people, particularly in the context of continuing economic uncertainty.

'With an increasing number of families facing financial difficulties, repossessions across the UK quadrupling in only four years and forecast to increase by another 60 per cent this year, it is imperative that families are protected with the full weight of the law.

'That is why proposals for a new law - the Home Owner and Debtor Protection (Scotland) Bill - to protect people affected by debt and at risk of repossession were recently published.

'This legislation will provide practical help by ensuring for the first time that all action for repossession is scrutinised by the courts to ensure every reasonable alternative to repossession has been considered by lenders, and that they have acted appropriately. 

'It will also make it easier for borrowers to make representations to court.  I hope the bill will continue to attract broad support from across the political spectrum.'

Notes to editors

1. Shelter Scotland believes everyone should have a home. The charity helps 170,000 people a year across the UK fight for their rights, get back on their feet, and find and keep a home. We also tackle the root causes of Scotland’s housing crisis by campaigning for new laws, policies and solutions.
2. These figures are collected from Sheriff Courts by the Scottish Government and cover the periods April 2007 to March 2008 and September 2008 to August 2009.  Changes in the data collection method may affect comparison across the two periods.
3. Measures to protect home owners are set out in the Repossession Working Group's report of June 2009.  Legislative proposals are in the Home Owner and Debtor Protection Bill.
   
4. Spokespeople are available for interview, telephone the media office on 0844 515 2442. An ISDN line number is available for broadcast interviews.
5. Follow Shelter Scotland on Facebook; Twitter; Bebo. Or pick up a Twibbon.