Repossessions set to rise says National Homebuyers

The UK is facing a home repossessions crisis, according to one expert.

[UKPRwire, Tue Oct 09 2007] With interest rates at a six-year high, many home buyers have found themselves struggling to keep up with mortgage payments, reports Inside Housing.

Shelter, the homelessness charity, says that it has seen a surge in people going to it for advice on the housing-related financial difficulties they are experiencing.

"There's a danger that unless we get our act together, there may be a repossession crisis that we've not seen since the 1990s," Adam Sampson, chief executive of Shelter told delegates at the Conservative Party conference last week.

"[Gordon] Brown's reputation has been built upon a booming housing market, allowing people to draw money against what is a paper increase in their house value.

"We have to ask ourselves about whether it is a responsible government objective to press more and more people into home ownership," he added.

Julian King of National Homebuyers says, "Although months and months away, we are at the point where politicians are too busy scoring political points to actually make a concerted effort to improve the situation.

"As the UK's leading quick property purchase firm, we speak to thousands of people every month who need a quick sale of their property. Many of these are facing financial difficulties.

"We believe that as we are at an eight year high in repossessions with 22,000 last year, we are already in a repossession crisis. We do, however, expect the political argument to continue until Mr Brown goes to the people" says Mr King.

The Conservatives also announced at the conference that it would raise the stamp duty threshold if it came to power