Housing charity Shelter has revealed statistics on home repossessions in the UK. The findings identified several areas as ‘repossession hotspots’, with Corby in the East Midlands recognised as the area at most risk. It is estimated that 7.56 people in every 1000 will lose their homes.
Other key areas where homeowners are considered to be at risk of having property repossessed include Harlow, Manchester, Dagenham, Knowsley and Peterborough to name but a few.
The number of repossessions in the UK saw a dramatic increase at the beginning of 2011 whilst the number of jobless increased by 3.3% in local authority areas. Unemployment levels and the number of repossessions are undoubtedly linked; areas identified as having low levels of repossession have an average unemployment rate of just 1.4%, less than half of that seen in high-risk areas.
It has been reported that in excess of 13,000 applications for repossession orders were made between January and March of this year. This figure looks set to rise as unemployment is forecasted to increase towards the end of the year as a result of public sector cuts. Experts are predicting a staggering 45,000 homes will be repossessed in the next 12 months.
Lenders have been subject to a great deal of criticism for lending irresponsibly although many fingers would point towards loss of income as the main cause of the problem, a factor out of the hands of the lenders. This, combined with rising inflation rates, increased living costs and static wages will mean the situation can only worsen.