House price reductions leading to repossessions

Tue, 29 Nov 2011

Significant reductions in house prices since the height of the property boom has resulted in a rise in repossession numbers, it has been suggested.

Ken Sives, an estate agent in Larne, Northern Ireland, noted some people have seen up to £100,000 wiped off the value of their dwelling in recent times, which has also led to bankruptcy in some cases, the Larne Times reports.

Mr Sives observed Larne itself is likely to have seen house prices drop more than the average for the rest of the country, adding: "This is why we have seen quite a few repossessions. People are simply saying to themselves there is no way out, other than to hand the keys back to the lender ."

However, such action does not help to solve the problem and can often result in an increasing number of bankruptcies, he pointed out.

The industry figure's comments came after a recent survey carried out by HSBC - which serves more than 41 million people worldwide - revealed tumbling house prices have led to over 350,000 first-time buyers becoming trapped in properties purchased when the market was at its peak.

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