According to research from the Royal Institution of Chartered Surveyors RICS the number of repossessions has increased in the second quarter of 2007 by 32 per cent, compared with the first three months of this year.
The research has also shown that the majority of repossessions were in the Northwest of England. An increase in auction activity has also been reported, with the number of homes being sold at auction increasing to 25,115 compared with 7,982 in 1996.
Due to the increase in interest rates and people coming to the end of their fixed term, the Royal Institution of Chartered Surveyors RICS are predicting that the number of homes that will be repossessed during 2008 will be 45,000, which is a 50 per cent increase. Lenders who deal with repossessions will also find themselves needing a home information pack to re-sell a four or more bedroomed property.
Our view
We suggest that interest rates have now stabilised and will start to fall next year to stimulate the economy which as slowed a little. Therefore, repossessions may not be as nigh as those predicted by the RICS.
The message though is clear to lenders, advisers and borrowers: Start lending responsibly.
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