The danger that courts may order outright possession to lenders if landlords fail to pay a buy to let mortgage raises cause for concern says the Residential Landlords Association.

The organisation made its comments after the recent second reading of Bolton MP Dr Brian Iddon’s private member’s bill which is aiming to protect tenants from losing their homes if their landlord defaults on a mortgage.

The RLA agrees that the move is a step forward in terms of keeping things fair for tenants, landlords and lenders.

But the Association’s lawyer Richard Jones believes some of the clauses need amendments to make then clearer, for example in the case of a situation where a landlord has given the keys back – which could require a court order to rectify the matter. An explanatory note from the department for Communities and Local Government says that the Bill gives protection in this situation.

Jones said: “We hope this is the correct view. 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.”

Despite the 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.

This, believes the RLA, cannot be fair and it brings into disrepute the reputation of a private rented sector.