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Friday, May 09, 2008

Repossessions Rise

Home repossessions, having risen by 16% in the first quarter of this year, are now nearing the levels of the recession of the early 1990s.

The Ministry of Justice states that 38,688 mortgage possession claims were issued from January to March 2008, compared with 33,715 for the first quarter of 2007.

In the third quarter of 1990 repossessions were 37,498.

As the economic conditions worsen (eg rising food and fuel bills, rising taxes and a credit drought etc) so too will the number of repossessions.

The Government, in a lack luster attempt to try to show that they are "in control", have yet again delayed their absurd and costly Hips implementation to the end of the year.

The fact that the government thinks that this will materially help matters shows how completely out of touch and out of the driving seat the government really is.

Alistair Darling, playing King Canute, pleaded with the chief executives of the six biggest UK banks yesterday to do everything that they can to prevent borrowers from losing their homes.

The crisis will pass, but it will not be this government's actions that resolve it.

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