Increase in repossessions show housing bubble is close to bursting
November 1, 2005 6:30 PM
Homes in the South East region are being repossessed once every 45 minutes. Latest figures from the Department of Constitutional Affairs show a huge rise in the numbers of mortgage possession procedures issued in the county courts.
Nationally the number of possession actions entered into in the three months to September 2005 rose to 29,991, up from 19,359 from the same period in 2004 - a rise of 55%.
The number of orders made in the three months to September 2005 rose to 19,687 from 11,682 - a 66% jump.
Analysis of the data by the Liberal Democrats shows that these figures mean that in England and Wales a repossession order is made every seven minutes and an action is entered into every four minutes.
Regionally an action is entered into every:
- London: 24 minutes
- South East: 30 minutes
- West Midlands: 43 minutes
- North West: 42 minutes
- Eastern Region: 45 minutes
- Yorks and Humber: 47 minutes
- East Midlands: 58 minutes
- South West: 64 minutes
- Wales: 81 minutes
- North East: 87 minutes
- Merseyside: 153 minutes
Regionally a repossession order is made every:
- London: 37 minutes
- South East: 45 minutes
- West Midlands: 61 minutes
- North West: 66 minutes
- Eastern Region: 68 minutes
- Yorks and Humber: 80 minutes
- East Midlands: 88 minutes
- South West: 90 minutes
- Wales: 122 minutes
- North East: 140 minutes
- Merseyside: 207 minutes
Commenting on the figures Vince Cable MP, Liberal Democrat Shadow Chancellor said:
"These figures are deeply worrying. While they are at low levels compared to the early 1990's there are clearly big problems ahead.
"Banks and building societies need to ensure that when individuals take out mortgages they are fully aware of the risks that are involved and of the relevant insurance products.
"At long last the Chancellor has now accepted there is a bubble in the housing market. Now he needs to recognise that for many homeowners it is sadly bursting and that he needs to take action.
"These figures demonstrate the complete absence of an adequate safety net in the mortgage market. The government needs to urgently look at the payment protection insurance markets as products are often over-priced and contain too many exemptions."
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