Repossession figures rise by a fifth
According to recent figures released by the Ministry of Justice the number of homeowners in the UK that could face losing their homes has risen by a fifth in the space of a year. During the first quarter of this year a total of 27,530 repossession orders, which is the first stage of the repossession process, were filed with the courts, which was an increase of 17% compared to the first quarter of last year and an increase of 9% compared to the final quarter of 2007.
The data also showed that repossession claim levels had also risen, with the 38,688 claims reflecting a rise of 16% compared to the same period last year and an increase of 7% compared to the final quarter of 2007. The data reflects the difficulties that homeowners are facing when it comes to loans and finances, with increased bill, living costs, and repayments all impacting heavily in financial strains.
Former president of the Royal Institute of Chartered Surveyors, Barry Gilbertson, said that whilst it had been forecast that around 45,000 would lose their homes over the course of this year the actual figure could be closer to around 53,000 based on these figures. He said: ‘Every one of these is a family in distress - and every one has to find somewhere else to live.’
The Housing Minister, Caroline Flint, stated that whilst she was concerned about these figures, they were a long way off from the figures seen in the 1990s when the property market crashed. The Council of Mortgage Lenders, however, is sticking by its original forecast of 45,000, as it states that further interest rate cuts will help to bring down the figures as the year progresses.
