INCREASE IN REPOSSESSIONS SHOW HOUSING BUBBLE IS CLOSE TO BURSTING: MULHOLLAND
November 7, 2005 12:00 AM
Latest figures from the Department of Constitutional Affairs show a huge rise in the numbers of mortgage possession procedures issued in the county courts.
In Leeds the number of possession actions entered into in the three months to September 2005 rose to 468, up from 253 from the same period in 2004 - this compares with a national rise of 55%.
The number of orders made in the three months to September 2005 rose to 19,687 from 11,682 - a 66% jump.
Analysis of the figures by the Liberal Democrats shows that these figures mean that in England and Wales a repossession order is made every seven minutes and an action is entered into every four minutes.
Commenting on the figures for Leeds, Greg Mulholland, MP for Leeds North West, said:
"The numbers of actions entered, suspended orders and orders made in Leeds have increased considerably from 2004 to 2005. This is an extremely worrying trend.
"These figures are very disturbing. While they are at low levels compared to the early 1990s there are clearly big problems ahead.
"Banks and building societies need to ensure that when individuals take out mortgages they are fully aware of the risks that are involved and of the relevant insurance products.
"At long last the Chancellor has now accepted there is a bubble in the housing market. Now he needs to recognise that for many homeowners it is sadly bursting and that he needs to take action.
"These figures demonstrate the complete absence of an adequate safety net in the mortgage market. The government needs to urgently look at the payment protection insurance markets as products are often over-priced and contain too many exemptions."
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