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UK Home Sales Flounder As Homeowners Are Faced With Repossession

by Jim ONeil on December 15, 2010

in uk loans news

Shelter, a UK homeless charity, reported that nearly one million households in the country have fallen behind in mortgage or rent payments. This figure is twice what it was just one year ago and charities predict that the number will increase in 2011. Perhaps most unfortunate is the fact that homes with children are most at risk when it comes to going into arrears.

According to Shelter Chief Executive Campbell Robb, someone in the UK faces home repossession every two minutes. One thing, such as a reduction in income or an illness, can result in debt that leads to the loss of a home. Three percent of the households surveyed by Shelter said that they were behind in rent or mortgage payments. One-third of these situations will result in court repossession cases.

To escape this downward spiral, homeowners are putting their properties up for sale. However, many real estate agents are selling just one home per week due to a drop in demand. This decrease is a direct result of buyers being unable to get affordable mortgages. The Royal Institution of Chartered Surveyors reported a drop in average number of properties sold per real estate agency to the lowest since June 2009.

Home prices are being subject to pressure and are declining, making the situation less rosy for homeowners looking to sell. One RICS member, Chris Armstrong, commented that dark months are ahead and no one can do anything to stop the cuts. Though interest rates are low, people are still struggling to make mortgage payments.

With no way out because their properties are not selling, these homeowners are facing a grim situation. Rising inflation is expected to cause interest rates to increase during the second half of 2011. This will only make things worse for these homeowners and could cause the number of home repossessions to skyrocket.

udderly 'orrible

First Law of Doomsday Debt UK – NO police protection ever for any Labour MP/Minister.

Second Law of Doomsday Debt UK – All Labour MPs contacts and addresses to be published on the New Nuremberg Economic Sabotage Trial website, with a very special section for the cabinet ministers.

Treason and betrayal deserve no pity or protection.
Let them walk in fear for the rest of time.

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