Charity warns of possible repossession increase

14/08/2009

Repossessions in the UK could be on the increase in future, a charity has warned.

Shelter believes that a combination of rising unemployment and potential increases in interest rates could contribute to the trend, the BBC reported.

The warning comes as the Council of Mortgage Lenders (CML) releases new repossessions data, showing a ten per cent drop in numbers over the second quarter of the year.

In all, 24,000 people suffered repossession over January-June.

The organisation's last prediction for 2009, made in June, forecast that 65,000 people would lose their homes - up from 2008's total of 40,000.

Shelter also praised the government for its actions to limit repossessions, which have included the £285 million Mortgage Rescue Scheme.

These programmes "have helped prevent the number of repossessions being as high as predicted," a spokesman for the charity was quoted by the broadcaster as saying.

Tags; Housing Debt and Bills, Young Family Finances,

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