Abacus Daily Debt News

Homeowners Advice: Repossession enquiries have increased

Repossession enquiries from borrowers struggling to make payments have increased over the last quarter, the Homeowners Advice Centre has said, due in part to a decline in the number of companies providing financial aid to those in distress.

Chris Jenkins, co-owner of the organisation, observed that, aside from this reduction in monetary assistance, the economic crisis has also led to a rise in calls for help, as "people … continue to look for options during a period of financial difficulty".

His comments follow the publication of the Property Portfolio Rescue distress index, which revealed an annual increase of 25.7 per cent in contact from troubled homeowners.

The review also predicted that, by the third quarter of 2010, the number of repossessions will climb to 18,392.

Mr Jenkins added that many debtors are still struggling, despite reports suggesting both the housing market and the economy appear to be recovering, although he did say that a spike in mortgage arrears will not necessarily mean significant growth in repossessions.

By Sarah Adie