Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, if he will place a moratorium on forfeiture of all residential leasehold properties under the Coronavirus Act 2020.

All ongoing possession proceedings, including forfeiture possession cases for leaseholders were suspended from 27 March until 20 September 2020. Any new claims entering the court system were automatically suspended.

The Government has also provided support to leaseholders through the mortgage holiday, and the application window is open until 31 March 2021. All payment holidays must end by 31 July 2021. Borrowers, including those with a buy-to-let mortgage, are entitled to up to a six-month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.

The Government believes that forfeiture is a draconian measure and should only be used as a last resort. In practice forfeiture happens very rarely and is subject to the right of relief, to be exercised at the court’s discretion.