House Repossessions Will Continue to Rise in 2007

House repossessions are on the increase in the u.k.

House repossessions will increase in 2007 as interest rates continue to rise, one industry body has warned.The Royal Institution of Chartered Surveyors (Rics) has said mortgage repayments are a much larger burden to homeowners than they have been at any time since 1991.

Affordability conditions will also continue to worsen with the monetary policy committee expected to continue to raise interest ratesTwo people living in a household on average incomes can now expect at least 22 per cent of their salary to be spent on home loan repayments. The last decade has seen massive property price increases with the cost of purchasing a house jumping by over 278 %The first half of 2006 saw around 8,000 properties repossessed by lenders, which is the highest figure for five years and may be a sign of things to come.

Unless the government builds more affordable housing and raises the stamp duty threshold, many young people will continue to struggle to access the housing market.
In addition many fixed rate mortgages have come to an end now and a lot of people with debt will not be able to afford higher interest payments on their mortgage interest payments which will fuel the repossession of properties in the u.k.





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