LABOUR’S housing minister yesterday insulted millions struggling to survive the recession by claiming that having their homes repossessed might be their “best option”.
John Healey, who has banked more than £129,000 in expenses on his second home since 2001, was accused of losing touch with reality.
His comments came on the day figures showed repossessions hit a 14-year high, with 126 families a day losing their homes in 2009. The figure is the highest since 1995 and a significant 15 per cent increase on 2008, said the Council of Mortgage Lenders.
People now homeless will find it particularly galling that Mr Healey made an £88,000 profit last July when he sold his taxpayer-subsidised flat in Lambeth, south London, for £198,000.
He bought the property in 2000 for £110,000 and over five years spent thousands on renovations that were paid for by the public through his Commons expenses.
Mr Healey was doing a radio interview when he shocked listeners by saying: “For some people it can be the only, and it can in fact be the best, option for them to allow their home to be repossessed. Sometimes it is impossible for people to maintain the mortgage commitments they’ve got. It may be the best thing in those circumstances.”
It is the second time Mr Healey, who owns his Wentworth constituency home in South Yorkshire, could be accused of insensitivity. In December he said those who could not afford to buy their own home should resign themselves to renting. Of falling home ownership figures, he said: “I’m not sure that’s such a bad thing.”
Critics yesterday demanded an apology from him as the BBC Radio Five Live programme was inundated with complaints. One listener said: “Having your home taken back by the lender is the worst thing that could possibly happen – and I speak through experience.”
Grant Shapps, shadow housing minister, said: “John Healey’s remarks are crass and insensitive. It proves Labour ministers have lost touch with reality and I’m calling on him to apologise to the tens of thousands of families who have lost the roof over their heads.”
Liberal Democrat Sarah Teather said: “If this is Mr Healey’s best response to record repossessions he should shut up. These comments are grossly insensitive to families booted out of their home.”
In addition to repossessions, a further 188,300 home owners fell behind with their mortgage payments last year. Lenders predict even more will get into difficulty this year. Economic uncertainty and possible interest rate rises could lead to 53,000 repossessions, they warned.
After his interview an unrepentant Mr Healey said: “If families are deep in debt and there is no way they can keep paying their mortgage, repossession might be the only way they can get their lives back on track."
“The wide range of Government support, together with lower interest rates and greater lender forbearance, has helped keep repossessions around half the rate of the last recession and stopped thousands of families from losing their homes."
“Obviously, Grant Shapps needs reminding of the record repossessions that took place during the early 1990s recession. Families were left to sink or swim as the Tories left the recovery to the market. This Labour government has put support for home owners at the heart of our response to the downturn.”
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