Press Release

Emergency help for home repossession expands

8 August 2008

Emergency legal aid schemes for people facing repossession of their homes are to be set up in 20 more county courts with still more court schemes in the pipeline, the Legal Services Commission (LSC) announced today.

The move comes in response to concern at the rising number of people losing their homes in repossession cases. Statistics out today from the Council of Mortgage Lenders will show if this trend is still continuing.

The LSC, which runs the legal aid system, funds these emergency schemes so that anyone in danger of eviction or having property repossessed can get free legal advice and representation on the day of the hearing, regardless of their financial circumstances. 174 courts will now have ‘Housing Possession Court Duty Schemes’. The LSC had already funded 94 county courts aimed at people who have not sought legal advice prior to their hearing. In addtion a further 60 courts have schemes funded by Communities and Local Government, or other local funding.

The scheme first ran in 2005. In 2005-06 around 12,000 cases were undertaken. By 2006-07 that had more than doubled to around 30,000. The latest expansion means even more people will have access to the service in the coming year.

The temporary accommodation costs for families accepted as homeless can run as high as  £16,000 a year. The loss to individuals and families cannot be calculated so easily. The cost of representing someone under this scheme and helping them to keep their home averages under £100.

Carolyn Regan, Chief Executive of the Legal Services Commission said:

“The credit crunch and rising costs are fuelling a growth in repossessions which is why we are acting fast to commission these emergency court schemes and help more people stay in their homes. Homelessness has a devastating effect on people and their families, yet so many people arrive at court without legal help. Court duty scheme advisers do a fantastic job but the more time an adviser has to prepare, the better the chance people have of keeping their homes. Therefore getting early advice is still the best advice. If people have housing or money problems they should try and get early advice from a qualified source. Our Community Legal Advice helpline, 0845 345 4 345, can either give advice over the phone, or point callers in the right direction.”

The LSC has worked closely with Communities and Local Government to ensure good coverage in courts.

Housing Minister Caroline Flint said:
"Whilst the rate of repossessions is not on the same scale as the early 90s, we want to ensure that the right support is in place for those who might need it now because of global economic pressures. That's why we are expanding free legal representation at county courts, which can make a real difference in ensuring that repossession is only ever used as a last resort."

Using  www.communitylegaladvice.org.uk anyone can access free advice and information sheets on issues relating to housing, debt, welfare benefits and a range of other problems. The Community Legal Advice helpline, 0845 345 4 345, can provide callers with general housing advice as well as specialist advice for those who are eligible for legal aid. Callers can also get advice about debt and welfare benefits problems – often experienced by people facing housing issues.

Details of the Invitations to Tender will be published today for the first 20 County Courts where new schemes will be put in place. Future Invitations to Tender for further Schemes in more County Courts across England and Wales are planned for later this year.