CML forecasts 75% increase in home repossessions
by Gill Montia
The Council of Mortgage Lenders (CML) has published a sombre report in which it predicts that house repossessions will rise by 75%, in 2007.
This would mean that the number families who will lose the roof over their heads will increase from 17,000 in 2006, to 30,000 by the end of this year.
The forecast for 2008 is even higher, at 45,000, and the CML believes that the increase in repossessions will be accompanied by a rise in the number of homeowners who are at least three months in arrears on their mortgages.
According to the Council, the UK property market is on the brink of the most serious slump since 1997, a view supported by a 20% decrease in the number of mortgages agreed in September.
In addition, estate agents are reporting lower sales and a reduction in the numbers of potential purchasers on their books.
Property experts and analysts vary widely in their opinions, the most optimistic predicting a stagnation in house prices over the next year and others seeing prices falling in both 2008 and 2009.
According to a recent report by the International Monetary Fund, the UK property market needs to experience a period of correction.
However, the Centre for Economics and Business Research is predicting price falls from autumn 2007 into 2008, after which the trend will reverse because of a property shortage and a rising population.
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