Repossession levels soar
Recently released figures have shown that repossession levels have soared recently, and that in the months to come the number of repossessions compared to last year could rise even further. Figures from the Financial Services Authority have indicated that repossession levels increased by around 71% between April and June of this year compared to the same period last year, and during this period around one hundred and twenty homeowners per day were being evicted.
The second quarter of the year saw 11,054 repossessions compared to around 6,500 the previous year during the same quarter, and this equated to a 71% increase. Officials from the FSA have also said that there has been a rise in the number of people that are struggling to keep on top of mortgage repayments, which means that there has been an increase in the number of households facing future repossession.
Some industry officials have expressed concern over these figures, and this is because the released figures for the second quarter came before the global financial crisis became even worse. This indicates that future figures could show that the situation is now even worse.
An official from housing charity Shelter said: ‘These figures are not only shocking and worse than expected, they highlight the crippling severity of the credit crunch on ordinary home-owners.’
Vince Cable from the Liberal Democrat Party said: ‘The collapsing housing bubble will produce large numbers of casualties, as people fall into arrears unable to sustain mortgage payments. If conditions deteriorate further, the current stream of repossessions will become a torrent.’
Leading economist Howard Archer said: ‘The fundamentals continue to be largely stacked against the housing market, and it seems odds-on that prices will fall considerably further.’
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