Housing minister makes repossession gaffe

Housing minister John Healey has caused consternation by saying in a BBC interview that he believes repossession may be the ‘best thing' for some homeowners.

His comments came hard on the heels of a Council of Mortgage Lenders report revealing that 126 people a day had their property taken into possession by their mortgage lender in 2009.

Healey was quizzed on Radio 5 Live as to why 46,000 homeowners were repossessed last year despite Government schemes being put in place to help people stay in their property. The Government also told mortgage lenders last year to exercise forbearance and only revert to repossession as a last resort.

Healey said: “In some cases there is no way round that and in some cases it is the best thing for the people who are struggling with these mortgages.”

When given the chance to explain his comments further, the minister reiterated: "Sometimes it is impossible for people to maintain the mortgage commitments they've got... it may be the best thing in those circumstances."

Healey’s comments were seen as particularly insensitive and inappropriate given recent evidence which found that he made a profit of £88,000 on a flat in South London that was subsidised by UK taxpayers for at least five years.

Shadow housing minister Grant Shapps said: “It is unbelievable that John Healey has now claimed that repossession can be the best option. Tell that to the 46,000 families who have been booted out of their homes in the past 12 months. This proves once again that Labour Ministers have completely lost touch with reality and I'm calling on the Housing Minister to apologise to the tens of thousands of families who have lost the roof over their heads.”

The Liberal Democrat’s housing minister Sarah Teather said: “If this is John Healey’s best response to record repossession figures then he should just shut up.

“These comments are grossly insensitive to families booted out of their home.

“Labour has no idea what life is like for victims of the recession. John Healey needs to get out more before he starts dismissing the misery of homelessness.”

Campbell Robb, the chief executive of the housing charity Shelter, said: "Behind each one of these numbers is a heartbreaking story of a family losing their home and having to rebuild their lives."

The Council of Mortgage Lenders has warned that arrears and repossessions are likely to increase this year thanks to the fragile UK economy. The Government claims that a number of schemes it has introduced have helped 330,000 families stay in their homes. But figures suggest only 276 families have actually been aided by the Mortgage Rescue Scheme, where eligible families can either get an equity loan to reduce their mortgage, or sell their home and remain as tenants.

Healey said: "If families are deep in debt and there is no way they can keep paying their mortgage, then repossession might be the only way they can get their finances and lives back on track. But my job as housing minister is to ensure this is always the last resort and that they have been able to explore all other options first.”