Lib Dems urge ministers to ban home repossessions over Christmas

Liberal Democrat leader Sir Ed Davey has called on the government to ban banks from repossessing people's homes over the holiday period.

Thousands of families are facing a "nightmare before Christmas" as mortgage rates soar, warned Sir Ed.

He is also demanding immediate action to protect private renters from eviction in England.

The government said it had met with lenders to ensure they support mortgage holders in financial difficulty.

• Millions face £250 monthly mortgage rise next year

• No-fault eviction threat up 76% for renters

• 'Evictions made us feel hopeless and disconnected'

The Lib Dem proposals include a temporary ban on home repossession, between now and 31 December, along similar lines to a ban that was in place during the pandemic.

They are also calling for a new Mortgage Protection Fund, which would provide temporary grants to those most at risk of repossession.

Sir Ed said: "The Conservative government put hundreds of pounds on people's mortgages through their disastrous mini-budget. The very least they could now do is to take responsibility for fixing this mess and protecting homeowners on the brink."

He added: "No-one should face losing their home this Christmas because the Conservative government crashed the economy."

The latest government figures show mortgage possession claims in the courts reached 3,680 between July and September, a 30% increase on the same period last year, although they are still lower than before the pandemic.

Rates on new fixed-rate mortgage deals have climbed throughout this year, as the Bank of England put up interest rates to curb rising prices.

But they shot up following then-Chancellor Kwasi Kwarteng's ill-fated mini-budget in September.

They stabilised, and fell back slightly in the aftermath of his successor Jeremy Hunt's Autumn Statement.

Anyone taking out a new mortgage is still likely to pay a much higher rate than on their previous deal.

Under the Lib Dem proposals, anyone who sees their mortgage payments rise by more than 10% of their household income would get a grant to cover the cost of that rise for the next year, up to a maximum of £300 a month.

The party is also calling for an increase in housing benefit - and for the government to pass much-delayed legislation to ban Section 21 no-fault evictions, where private landlords can evict tenants without giving a reason.

Sir Ed urged the government to pass legislation before the Christmas recess to enact the ban on no-fault evictions.

A government spokesman said: "We are protecting vulnerable families from homelessness this winter with an extra £50m to prevent evictions and secure new places for people to live."

He said cost-of-living payments were also being provided to the most vulnerable households, in addition to support with energy bills.

"Ensuring a fair deal for renters remains a priority for the government, that's why we will deliver on our commitment to abolish Section 21 'no-fault' evictions," he added.