Property clubs contributing to repossession woes

Tue, 23 Aug 2011

Britain's repossession woes are being increased by rogue property clubs, it has been claimed.

According to mortgagestrategy.co.uk, the Association of Residential Letting Agents (ARLA) believes buy-to-let purchases made though unprofessional firms have increased the number of house repossessions.

Recent Council of Mortgage Lenders data shows that the number of landlords having their assets taken away from them rose to 1,900 in the second quarter of this year - up 12 per cent on the 1,700 figure seen in the first three months of 2011.

ARLA operations manager Ian Potter told the website: "We regularly hear of buy-to-let repossessions and arrears cases arising from rogue clubs and the problem could get worse if we see a prolonged period of economic strife."

His sentiment was echoed by LettingFocus.com founder David Lawrenson, who explained that there are likely to be more rogue firms springing up over the next few years, which will in turn lead to more repossessions.

Meanwhile, Manchester Evening News recently revealed that Auction Finance has noted a rise in buy-to-let landlords purchases at auction - many of which are of properties that have been repossessed.

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