Repossessions 'on the rise'

Posted: 29 Oct 2008 13:53:23 GMT

            Property News - Repossessions 'on the rise'

The number of home repossessions has rocketed by 71 per cent over the last year as the credit crunch has taken its toll, new research reveals.

According to the latest quarterly figures to be published by the Financial Services Authority (FSA), there were 11,054 new possession cases in the second period, up from 9,172 during quarter one.

The regulator noted that the number of new arrears cases has remained level at about 54,000 each quarter. However, those that do fall behind are increasingly struggling to clear their back-payments.

As a result, the total number of accounts in arrears has jumped to 312,000 - up 16 per cent on the same quarter in 2007. The FSA estimates that the overall value of these arrears now stands at £1.6 billion.

On October 22nd, the government announced new rules designed to protect homeowners at risk of repossession.

Chief secretary to the treasury Yvette Cooper said: "We need to make sure we help those who might be hardest hit in the tougher times ahead, ensuring repossession is the last resort not the first."

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