Rise in repossessions expected this year

Mon, 23 Jan 2012

This year is likely to see an increasing number of people struggling to pay their housing costs and facing the threat of repossession as a result, it has been suggested.

Bernard Clarke, communications manager at the Council of Mortgage Lenders (CML), said there are a number of elements that may contribute to this trend, including difficulties facing the wider economy and rising unemployment .

The industry figure noted the CML - whose members account for around 94 per cent of all residential mortgage lending in the UK - anticipates the number of mortgages falling into arrears of 2.5 per cent or more of the outstanding balance at the end of the year to stand at 180,000.

This would represent a marked rise on the 166,000 recorded at the end of 2011 and Mr Clarke stated: "An increase in the number of people falling into arrears is likely to also result in an increase in the number of cases of possession ."

However, the expert observed these levels need to be put into context - especially as possessions in the early 1990s ran at around double they are now.

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