London home repossessions triple

The number of houses repossessed in London every year has more than tripled since 2001, new figures have revealed.

Five years ago, just 1,854 homes were repossessed in the capital every year. This rose to 6,661 last year, however.

Analysts have said that continued house price increases have caused some to overstretch themselves on mortgages, a problem often exacerbated by unsecured borrowing.

The figures, taken from county court repossession records, were supplied in answer to a parliamentary question by Liberal Democrat London spokeswomen Lynne Featherstone.

“These figures are very worrying and the rate at which they are growing signals big problems for the future,” said Ms Featherstone.

“The government needs to accept the seriousness of the situation.

“While the housing market has been looking strong recently, it is clear that there is a significant minority of homeowners who are finding it hard to cope.”

She also called for the government to tackle lenders supplying “irresponsible” amounts.

Other analysts have said that the increase could be attributed to a slight rise in the cost of lending since 2001 and average London property prices that have tripled in the last ten years.

© Adfero Ltd

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