House repossessions to rise in 2012
Filed under: News —
Next year will witness rising numbers of house repossessions according to the latest estimations from the Council of Mortgage Lenders (CML).
The CML reckons that the number of house repossessions will increase to 45,000 in 2012 from 37,000 this year. That’s an increase of 22%.
The repossession growth is largely down to increasing unemployment along with a decrease in the average household income across the country.
The CML has also cut its forecast for both mortgage lending and property sales in 2012.
Property sales are set to drop from 850,000 this year to 825,000 in 2012, and the CML has revised its mortgage lending forecast downwards.
Previously it had estimated mortgage lending would hit £150 billion in 2012, up from £138 billion this year. However, next year’s figure has now been revised to £133 billion, a drop of £5 billion from 2011.
The latest numbers from the Financial Services Authority (FSA) show an increase of 5.8% in home repossessions. 9,134 houses were repossessed in the second quarter, which increased to 9,670 in the third quarter.
Bob Lender for Financial Advisor said, “Despite a recovering in the number and type of mortgage products available to consumers, there is still little demand for products from mortgage brokers.”
Story link: House repossessions to rise in 2012
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