Davey said the Conservation government had mismanaged the economy in its mini Budget, which had caused spiralling mortgage and rental prices which put more people at risk of repossession or eviction.
He said the emergency ban would prevent banks from repossessing people’s homes who have been “hit the hardest by soaring mortgage prices”.
Davey added that it would bring forward the “promised ban on no-fault evictions”. He said that there should also be a ban on evictions for arrears over winter.
Former Prime Minister Liz Truss had confirmed in October that no-fault evictions would be scrapped, but was proposed by Michael Gove, then Levelling Up Secretary earlier this year.
He said: “We are deeply concerned that both renters and homeowners could face homelessness during one of the most difficult winters in living memory.
“We are making these urgent calls on the Conservative government as only days of parliament remain before Christmas for the Prime Minister to take responsibility for the mess his government has caused.”
Davey said the Conservatives had “failed time and time again” to bring forward the no-fault evictions ban and had “made no attempt to stop repossessions caused by their disastrous mini Budget”.
He continued: “They must act now before it is too late. No one should face losing their home this Christmas because the Conservative government crashed the economy.”
UK Finance’s latest data on arrears and possessions, which was published in November, found that 74,440 homeowner mortgages were in arrears of 2.5 per cent of more of their outstanding balance, which is one per cent lower than the previous quarter.
Around 28,910 homeowners were in more significant arrears, which is 10 per cent or more of the outstanding balance. This is unchanged from the prior quarter.
The report added that there were 700 homeowner mortgaged properties taken into possession in the third quarter of this year, which is up 15 per cent on the previous quarter.
