Home Repossessions Rise By Over 50%

The number of people losing their homes has risen by 54%, according to new statistics released today by the Council of Mortgage Lenders (CML).

A total of 40,000 properties were repossessed last year, up from 25,900 in 2007. Around 219,000 people were three or more months behind with their mortgage payments at the end of the year, up from 127,500 at the end of 2007.

Despite the recession, the CML said these figures were fewer than it had originally predicted, but it expects repossessions this year will reach about 75,000, as the fallout of the economic downturn worsens.

The CML said that the lower repossession figures indicated that lenders were making "strenuous efforts" to try and keep people in their homes.

"We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions," said the CML's director general Michael Coogan.

"Borrowers are still liable for their debt, even if they leave the property, so working through their problems is much more likely to be in their best interests," he added.

The Ministry of Justice (MoJ) also released figures highlighting the number of repossession orders made by courts in England and Wales during the final quarter of 2008.

The figures for England and Wales show that initial repossession claims - the first stage of the process - stood at 26,008 in the last quarter of 2008.

That was 32% lower than in the previous three months, and 29% lower than in the final quarter of 2007.

Meanwhile, the Government this morning revealed new details of its Homeowner support scheme, which is aimed at cutting the number of repossessions.

Margaret Beckett, the Housing Minister said: "We are determined to do everything possible to ensure repossession is always a last resort, and are taking action to give real help now to households most in need.

"Our mortgage rescue scheme is up and running, more free legal and debt support is available than ever before, and we have increased financial assistance to help people pay their mortgage if they've lost their job."

(JM/BMcC)