Russell criticises rogue landlords

9.55.14pm GMT Mon 1st Feb 2010

Colchester MP Bob Russell condemned owners of buy-to-rent houses who default on the mortgages leading to their tenants being evicted even though they had paid their rent.

Speaking in the House of Commons on Friday in support of the Mortgage Repossessions Protection of Tenants Bill, he said that he was personally aware of three such incidents in Colchester because the tenants who lost their homes had come to him for help.

In one case, the address of the owner was not known and the tenant paid the rent via Post Office Box Number in south Essex. It was only when letters from the mortgage company arrived at the tenant's house that it was realised their rent had not been used by the landlord to pay the mortgage. Mr Russell questioned how the mortgage company had given a big loan to a landlord in such circumstances.

He mentioned that the housing crises - caused by the failure of successive governments over the past 30 years to build council houses for families - meant that increasing numbers of people were being forced into the private rented sector. While most landlords were reputable, he said that not all were and that was why the Bill was so important.

Mr Russell said that the lack of council houses and led to a growth in the buy-to-rent market. He was aware of six people in Colchester who had become property millionaires as a result, with one owning 50 houses which he rented out and another who had acquired 12 former council houses which he now rented privately at high rents which in many cases were supported by public money in the form of Housing Benefits.

While welcoming the Private Member's Bill, introduced by Bolton MP Dr Brian Iddon and which has all-Party support, Mr Russell said that it represented only one part of the large jig-saw of housing provision in the country. In addition to calling on the Government to bring back the building of council houses in a meaningful way, he also urged the Government to deal with the mismatch of housing demand with empty houses. He pointed out that one way of tackling the housing crisis was to bring empty houses back into occupation.

The Bill was given an unopposed Second Reading. Liberal Democrat Mr Russell will be serving on the Committee Stage of the Bill, and with All-Party support there are high hopes it will become an Act of Parliament before the General Election.