According to the Council of Mortgage Lenders the number of houses repossessed has increased by 12% in the third quarter of this year. There was also an 8% increase in the number of homeowners that are struggling with mortgage debt arrears. The number of court orders for repossession increased by 3% for the same period, raising fears that more cash strapped consumers could lose their homes.
The government, worried due to the sharp increase in the number of people in financial difficulty and seeking debt help, have decided to intervene. They are encouraging banks to explore all other avenues before taking legal action, offering more free legal help and easier access to debt advice providers.
The onset of the first recession for many years, coupled with the expected rise in unemployment, suggests a worsening picture for the future and the prospect of more repossessions to come.
