Repossessions among UK mortgage holders 'could peak in 2011'

Date:Monday 22nd June 2009
Author: Max Freedman

The number of UK homes being repossessed because their owners cannot keep up with their mortgage repayments could reach its peak in two years' time.

This was the claim made recently by economist Ian Shepherdson.

Speaking at the Chartered Institute of Housing Conference and Exhibition in Harrogate, he said that the expected rise in unemployment will lead to the number of repossessions climbing considerably.

He stated: "I hope and I think that they won't go as high as they did in the early '90s when interest rates were fantastically high, but they will go substantially higher and we are going to have a big repossession wave."

Mr Shepherdson added that while he cannot predict the precise number of homes likely to be repossessed, he expects there will be quarterly averages of between 25,000 and 30,000 at the peak of the trend.

Research conducted recently by YouGov on behalf of housing charity Shelter found that 22 per cent of people polled were struggling or falling behind with their mortgage repayments.