Repossessions fell to a 3-year low in 2010, but experts advised that a growing number of homeowners would face difficulty during year 2011 and risk losing their house.
The Council of Mortgage Lenders said that, “ Lenders recaptured 7,900 homes in the last quarter, down 26% on the similar period a year earlier and 11 % lesser than in the 3rd quarter”. This was the 5th successive quarterly fall.
During year 2010 as a whole 36,000 home owners were repossessed, the smallest number since 2008.
However, experts provided intimations that the repossessions were probable to rise this year, with stiff economic conditions, the probability of interest rate rises, and increasing unemployment are likely to make life very hard for several mortgage holders.
The Bank of England left interest rates at their record level of 0.5 % for the 23rd successive month on Wednesday, causing some economists to warn the Bank dropped a chance to curb inflation.
Chief UK economist at IHS Global, Howard Archer, Insight said that the figures suggested that home lenders were being more compassionate with home owners and that Government methods, established by the previous administration, were making sure that people were being thrown out of their houses is only a last resort.
However, he added: “A large number of home owners are yet at risk, chiefly if economic activity is subdued and unemployment rises higher in year 2011 as tighter fiscal policy progressively bites. The considerable fiscal squeeze will gradually hit consumers’ pockets and public sector jobs, while households already face elevated unemployment, elevated debt levels and negative real wage growth”.
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