Repossession hitting many households each day

Many households in the UK are being forced out of their homes through repossession on a daily basis according to recently released figures, with around 125 families a day having had their homes taken off them. An increasing number of people have been falling into arrears with their mortgages, not just because of higher interest rates, which have now fallen considerably, but also as a result of higher living costs, increased bills, and job losses.

Figures from the Council of Mortgage Lenders showed that the in the three months leading up to the end of September of this year, there was an increase of 12 percent in repossession levels, with 125 families a day losing their homes as a result of repossession. In this period there were 11,300 repossessions in total. Tight credit conditions and high living costs have left many families struggling to cope with their repayments.

The number of repossession properties going to auction has also been rising, and one industry official stated: ‘The dramatic rise in repossessions at auction is the combination of two factors, the slowing housing market in the UK and the increasing desire of Banks and Building Societies to liquidate their repossessed stock.’

The Council of Mortgage Lenders stated: ‘Most borrowers who face payment problems successfully keep their home by working with their lender. The Government has taken some helpful steps towards targeted support for some of the most vulnerable households, but with a worsening economy now needs to make it a priority to go further. Increased help with housing costs is needed for a wider range of borrowers facing unforeseen repayment difficulties where there would otherwise be little prospect of early improvement. Next week’s Pre-Budget Report should concentrate on making much more assistance with mortgage payments available for people whose income is reduced, as help is currently far too limited.’