2005 press releases

Increase in repossessions show housing bubble is close to bursting - Baker

Local MP Norman Baker has voiced his concern at the latest figures to be released from the Department of Constitutional Affairs showing a huge rise in the numbers of mortgage possession procedures issued in the county courts.

The figures show that nationally the number of possession actions entered into in the three months to September 2005 rose to 29,991, up from 19,359 from the same period in 2004, which represents a 55% rise, while the number of orders made in the three months to September 2005 rose to 19,687 from 11,682 - a huge 66% jump.

Further analysis of the data by the Lib Dems shows that for the South East these figures mean that an action is entered into every 30 minutes and a repossession order every 45 minutes, more than any other region except London. In the Lewes area 19 individual orders were completed in 2005, with a further 35 being entered into in the 3 months to September this year.

Commenting on the figures Norman Baker, said:

"These figures are deeply worrying. They may be below the worst levels of the early 1990's but 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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