Experts warn of more home repossessions
The number of British homes being repossessed could be set to soar as rock-bottom interest rates begin to rise, experts have warned.
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The Council of Mortgage Lenders (CML) said yesterday that the "benign period", where the number of homeowners falling behind on their mortgage or losing their property has remained low, "may be coming to an end".
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Since the Bank of England froze the base rate at 0.5 per cent in March 2009, homeowners across the country have been able to keep making repayments, but given other financial pressures faced by so many these days, when interest rates rise it could cripple some.
Bob Pannell, chief economist at the CML, told the Daily Mail: "The benign period of falling arrears and possessions may be coming to an end. We remain aware that a sizeable minority of households continue to be subject to financial pressures."
Further adding to potential strife within the housing market is the news that property prices are expected to soar in the next few years.
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A report by the National Housing Federation described the market as "dysfunctional" and "broken", and predicted that prices will soar by up to 44 per cent over the next seven years, to a record average of £331,387 in 2020.
David Orr, chief executive of the Federation, said: "With house prices set to rocket by 2020, an entire generation will be locked out of home ownership forever, and be forced to rent for life."
What do you think? Have you decided to forget about home ownership and opted to rent? Leave your comments below...
