Home repossessions fall 7.5 percent in first quarter

Published 13th May 2010

The number of homes repossessed by lenders in Britain fell to 9,800 in the first three months of this year from 10,600 in the final quarter of 2009, the Council of Mortgage Lenders said on Thursday.

That was a fall of 7.5 percent on the quarter and down almost 26 percent from 13,200 in the first quarter of 2009.

There was also a decline in the number of people who fell behind with their mortgage repayments in the first quarter, with the number of loans in arrears down to 186,300 from 206,800 in the first quarter of 2009, and 196,400 in Q4 2009.

The CML said it expected to revise down its forecast for 53,000 repossessions this year if interest rates do no rise and government support continues, but warned that an impending fiscal squeeze could have an impact.

"With all eyes on the new government and what steps it will take to address the fiscal deficit, we cannot emphasise too strongly the importance of continuing to fund the support mechanisms that are proving effective in containing mortgage arrears and repossessions," said CML director general Michael Coogan.

"The dampening effects on households and the wider housing market that fiscal tightening is likely to exert are still to be felt, but it should be a key priority to support borrowers most in need and maintain funding for the government's housing policies."

Source: ' Reuters '

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