Mortgage drought means repossessions will rise
Filed under: News —
The Council of Mortgage Lenders believes that the number of repossessions will rise to 45,000 next year, from 37,000 in 2011, an increase of 22%.
This spike in repossession activity will be primarily driven by increasing levels of unemployment, and in turn decreasing household income levels.
Unsurprisingly given the continued economic turmoil, the CML has also cut both its forecast for property sales and mortgage lending in 2012.
The Council estimates that 825,000 homes will be sold next year, which is down from 850,000 in 2011.
Mortgage lending for 2012 was previously forecast to hit £150 billion, but the CML has now revised that prediction considerably to £133 billion, down from an estimated £138 billion this year.
Bob Lender at Financial Advisor said, “There’s precious little in the way of good news for the housing market, as mortgages for first-time buyers continue to be a difficult proposition despite interest rates holding at very low levels.”
Story link: Mortgage drought means repossessions will rise
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