Business | Property
Repossessions could rise sharply in UK
The number of mortgaged properties that will be repossessed in 2008 is set to rise to 33,400 - up more than 23 per cent on last year and a heady 300 per cent increase on 2004.
- Reuters
- Published: 00:30 May 2, 2008
London: Property repossessions are expected to jump almost a quarter this year, as the fall-out from the credit crunch takes hold, a leading economic consultancy said.
The number of mortgaged properties that will be repossessed in 2008 is set to rise to 33,400 - up more than 23 per cent on last year and a heady 300 per cent increase on 2004.
The prediction, from the Centre for Economics and Business Research (CEBR), comes as borrowers increasingly feel the pinch from higher mortgage costs and a tightening of lending criteria.
At the same time, Britons have record personal unsecured debts and the cost of living is rising, stoked by soaring fuel and food prices.
CEBR said that until the problems in wholesale money markets are rectified, mortgage finance will be severely constrained and, even where available, rates offered to consumers will fail to reflect recent cuts in the base rate.
The Bank of England has cut the cost of borrowing three times since December last year, taking the official rate of interest to 5 per cent from 5.75.
However, some lenders are failing to pass on cuts to consumers as they vie to shore up their financial position and improve margins.
Share this article
Gulf News classifieds
Popular in Business
Business Editor's choice
-
New law to protect investor rights
Dubai land department is studying legislation to protect property purchasers
-
Global Village
Revamped layout featuring four cultures to greet visitors this season
-
Cloud computing is here to stay
Managing security effectively is critical when sharing data over the internet
-
Banking
Mortgages: there's light at the end of the tunnel
UAE buyers are securing home loans again
