The Residential Landlords Association is concerned that the courts may order outright possession to lenders if landlords fail to pay a buy-to-let mortgage.

Friday’s (January 29th) second reading of Bolton MP Dr Brian Iddon’s private member’s bill – to protect tenants from losing their homes if their landlord defaults on a mortgage – is a step towards fair play for tenants, landlords and lenders, agrees the RLA

But the association still has concerns – including the clause covering a situation where a landlord has given the keys back – which could require a court order to rectify the matter – but “an amendment would be helpful to make this aspect crystal clear,” says RLA lawyer Richard Jones.

An explanatory note from the department for Communities and Local Government says that the Bill gives protection in this situation. “We hope this is the correct view,” says Richard Jones. “A court order would need to be obtained but, as the tenant is a trespasser as against the lender, the court must normally order immediate possession meaning the tenant would have to move out there and then.”

With some reservations, the RLA believes “the bill will enhance the private rented sector and assist tenants who, through no fault of their own, find themselves facing eviction at short notice.

“Past experience shows that tenants may not find out until the last minute that a property is being repossessed and we are aware of cases where the first indication is a bailiff turning up on the doorstep. That cannot be fair – and it brings into disrepute the reputation of a private rented sector that has struggled hard to gain the standing it deserves.“

The Residential Landlords Association is a leading national organisation with members owning over 100,000 properties in the UK’s professional private rented sector. The range of members’ services – on www.rla.org.uk – includes legal advice, insurance, financial services, credit referencing and training.