Soaring repressions may lead to rental property spike

08 2008
The number of homes being repossessed across the UK is 48 per cent higher than this time last year, the Council of Mortgage Lenders (CML) has reported.

According to the latest figures compiled by the professional body, some 18,900 homes were taken into possession over the first six months of 2008, up from 12,800 for the same period in 2007 and representative of a 12-year high.

While Michael Coogan, the CML's director, has pointed out that this nevertheless represents less than one per cent of all UK mortgages, growing numbers of professionals are citing a fear of repossession or negative equity as the reason behind their decision to stay in the rental sector.

Mr Coogan argued: "The good news is that most people are coping well and continuing to pay their mortgages in full, despite the higher costs of food and fuel and the higher mortgage rates now prevailing in the market for those coming off cheaper original deals."

Earlier this week the website mform.co.uk reported that just 34 per cent of first-time buyers are now under the age of 30, with many choosing to stay in the rental sector for longer in order to raise a deposit for their own home. ADNFCR-1219-ID-18723512-ADNFCR

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