Worsening economy may lead to repossession rise

Tue, 17 Jan 2012

A rise in repossession levels may be on the cards should the economy continue to worsen over the coming months.

Damian Riley, director of business intelligence for Homeloan Management Limited Business Intelligence, has noted such increases seen in 2011 came as a result of the high level of mortgage arrears witnessed last year, the Financial Times Adviser reports.

The industry figure noted any decline in the wider economy is likely to place additional pressure on households, even though interest rates should remain low for the time being.

His thoughts were echoed by Mark Blackwell, managing director of online property data network xit2, who noted an increase in unemployment will act as a catalyst for a marked rise in the number of homes being repossessed.

Mr Blackwell stated: "The protracted crisis in the eurozone and fiscal tightening domestically mean these latest figures are probably only the beginning of an upward trend in repossessions."

Earlier in the month, borough council housing chief for Basingstoke councillor Cathy Osselton claimed it is inevitable that the risk of home repossession heightens during times of recession .

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