Repossessions could hit 1991 levels

Posted: 19 Dec 2008 13:15:19 GMT

The number of homes repossessed next year could match levels not seen since 1991 if predictions are correct, it has been reported

Repossessions are already set to hit 45,000 this year alone, and Council of Mortgage Lenders (CML) predictions state that this figure will rise a further 67 per cent next year.

Such predictions could mean that 75,000 homes are taken from their owners in 2009, topping the peak of the number of repossessions seen during the recession of the early 1990s.

Housing minister Margaret Beckett claimed that the government was doing all that was in its power, but it is likely that the number of repossessions will still remain high.

"We are determined to do everything possible to provide real help to homeowners who may face difficulties during the downturn, and that means doing all we can to ensure repossession is always a last resort," she said.

Homeowners who took out 100 per cent mortgages or more may be the first to experience the negative sides to home ownership.

Those homeowners hoping to sell up, however, may make a faster sale by advertising their home online, as more buyers may see it compared to simply using an estate agent.

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