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'frightening Picture Of Repossession Hotspots

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London and the South east featuring nicely.

'Frightening Picture Of Repossession Hotspots'

Last Updated 06:49 21/06/2011

Some 65 "repossession hotspots" have been been identified by housing charity Shelter as unemployment levels rise and more homeowners find themselves in negative equity.

Corby in the East Midlands was found to have the highest rate of at-risk homeowners with some 7.56 per 1,000 - nine times higher than the lowest rate in West Dorset of 0.83.

The Northamptonshire town has the highest proportion of homeowners who have been issued with a possession order for their home over the last 12 months, according to the research.

It is closely followed by Barking and Dagenham and Newham in London; Knowsley, Merseyside and Thurrock, Essex.

A possession order is an advanced stage of the repossession process which means a homeowner is at serious risk of losing their home.

The study by the housing and homelessness charity identified 65 of 324 local authorities as repossession hotspots.

Shelter warns that the figures reflect a need for homeowners across the country to prepare for higher mortgage repayments when interest rates rise as expected later this year.

A recent report by the Financial Services Authority said banks are masking the true scale of the threat, with experts predicting repossessions will hit 45,000 next year.

The findings of the charity's report correspond with these areas having higher and increasing rates of unemployment.

The average rate of unemployment in the local authorities with the highest rates stood at 9.6%, compared to 5.3% in those with the least.

And unemployment has risen, on average, by 3.3% over the last three years in the most at risk areas, compared to a 1.4% increase in the lowest, Shelter said.

The study also identified clusters of local authorities - Tyneside, Kent coastal towns (Thurrock, Medway, Swale) and The Wash (South Holland, Fenland, Peterborough) - among those in the highest risk group.

It also highlighted a red "ribbon" of repossessions across northern England from the Mersey in the west to the Humber estuary in the east.

The results are based on analysis of the latest Ministry of Justice figures on the rates of claims leading to possession orders per 1,000 households for each local authority, published in May 2011.

Campbell Robb, chief executive of Shelter, said: "This research paints a frightening picture of repossession hotspots across the country where homeowners are literally on the brink of losing the roof over their head.

"We know only too well that the combined pressures of high inflation, increased living costs and stagnant wages are really taking a toll on people.

"All it takes is one thing like job loss to tip people over the edge and into the spiral of debt and repossession and ultimately homelessness."

I did a search of my area (Chelmsford) +10 miles at the weekend and went through everything whitin my price range. (several thousand! I was bored...) I've not done this for a couple of years I normally just look at the added in 24hrs once a day. I noticed that there were an awful lot of repos listed. Particulary the scum areas but not limited to. Most seem to have been added since around Feb this year. It could just be that I'm better at spotting them now than before but I don't remember there being any where near as many as that. And these were just the ones with offers on them!

Edited by Pent Up

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"All it takes is one thing like job loss to tip people over the edge and into the spiral of debt and repossession and ultimately homelessness."

Well they surely should have thought about that before they took on the debts?

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"All it takes is one thing like job loss to tip people over the edge and into the spiral of debt and repossession and ultimately homelessness."

Well they surely should have thought about that before they took on the debts?

It takes a lot less thn job loss, won't be just the debtors either. Every month that inflation outstrips earnings/income/savings drives more to the point of zero balance bewteen their income and expenditure. The one large bill introduces thenm to the slippery slope of accumulating debt, with each month inflation reducing their ability to dig themselves out of and increasing budget squeeze.

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It takes a lot less thn job loss, won't be just the debtors either. Every month that inflation outstrips earnings/income/savings drives more to the point of zero balance bewteen their income and expenditure. The one large bill introduces thenm to the slippery slope of accumulating debt, with each month inflation reducing their ability to dig themselves out of and increasing budget squeeze.

Indeed, the hole that Merv dug us into.

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Funny - if you can't or won't buy a home you're a renter.

If you are forced into it through reposession, you're 'homeless'.

Semantics eh?

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It takes a lot less thn job loss, won't be just the debtors either. Every month that inflation outstrips earnings/income/savings drives more to the point of zero balance bewteen their income and expenditure. The one large bill introduces thenm to the slippery slope of accumulating debt, with each month inflation reducing their ability to dig themselves out of and increasing budget squeeze.

+1,000,000

For all those who report price drops in real terms, please read the above post.

Price inflation without wage Inflation does not support house prices. It makes them more vulnerable and the mechanism for this means pain is felt by more than just the overleveraged.

Edited by Caveat Mortgagor

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"The only difference between the state of the housing market in the US and in the UK is the degree to which the banks have been willing to exercise forbearance in the case of non-payment of mortgages."

+1

Our market is being help up artficially with a coalition of Banksters and Politicians who know that when the house market starts to slide nothing will stop it until it hits a bottom identical to that in the US (40% down and still sinking). Merv does not want to be the man who pulls the plug with an IR hike.

The report shows my council as among the lowest in the nation at 1.56. Lots of retired gentlefolk my way so I suppose its a bit more stable than many other areas. Lewes DC wil be pleased no doubt.

Edited by Realistbear

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Indeed, the hole that Merv dug us into.

You can't be talking about the very same Sir Merv who didn't realise that savers spending their interest was a legitimate and healthy engine of the economy, and not to be sacrificed on the altar of the feckless

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You can't be talking about the very same Sir Merv who didn't realise that savers spending their interest was a legitimate and healthy engine of the economy, and not to be sacrificed on the altar of the feckless

"Shit that we are in culpability scale" (STWAIC scale)

Gordon Hamish Brown: 99%

Banksters: 0.99%

Merv: 0.01%

As someone on QT said about a year ago: The financial institutions are amoral, they need to be regulated.

The One who failed to regulate was Gordon Hamish Brown.

On the other hand, Blair was the boss and should have sacked him: respondat superior. Lets do the STWAIC scale again:

Blair: 98%

Brown: 1%

Banksters: 0.99%

Merv and the lads: 0.01%.

Reason Merv should hand his Kg. back: He failed to resign after he made the seminal statement warning in clear terms what was happening: "House prices are a matter of optinion whereas debt is real." That was Nobel prize stuff if only he had capitalised on it.

Edited by Realistbear

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"All it takes is one thing like job loss to tip people over the edge and into the spiral of debt and repossession and ultimately homelessness."

Well they surely should have thought about that before they took on the debts?

I never understand this attitude. Do you honestly believe that everything bad that can happen to someone is deserved (and presumably and visa versa)?

Presumably, the dinosaurs are to blame for their demise, since they failed to plan adequately for a meteor strike.

You are santa claus, now give me an effing pony.

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"The only difference between the state of the housing market in the US and in the UK is the degree to which the banks have been willing to exercise forbearance in the case of non-payment of mortgages."

+1

When the bubble does burst what will be the floor that the market drops to. In the past there has been far lower personal debt and lower living costs. The traditional 3.5 x income home value just won't be affordable, maybe it bottom at a much lower figure especial when taking the increased running costs that homes now attract.

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"All it takes is one thing like job loss to tip people over the edge and into the spiral of debt and repossession and ultimately homelessness."

Well they surely should have thought about that before they took on the debts?

I bet they thought the bank had done the risk assessment for them so everything would be fine.

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"All it takes is one thing like job loss to tip people over the edge and into the spiral of debt and repossession and ultimately homelessness."

Well they surely should have thought about that before they took on the debts?

...that is rather harsh....how can most buy a property without taking on debt?...it is not the debt but the type of debt and whether that debt is being repaid and can be afforded.

..just because governments, large corporates and certain countries choose to cook the books in an unsustainable way doesn't mean we all have to. ;)

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Funny - if you can't or won't buy a home you're a renter.

If you are forced into it through reposession, you're 'homeless'.

Semantics eh?

Brilliant. That really should be your sig.

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I bet they thought the bank had done the risk assessment for them so everything would be fine.

Doesnt matter really they will just jump on housing benefit and rent a house .

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I never understand this attitude. Do you honestly believe that everything bad that can happen to someone is deserved (and presumably and visa versa)?

Presumably, the dinosaurs are to blame for their demise, since they failed to plan adequately for a meteor strike.

You are santa claus, now give me an effing pony.

He didn't say anything about everything bad, just the direct results of someone's own stupidity and irresponsibly that's making the less stupid and irresponsible suffer. If nothing else people need to face the consequences of their own actions, then they might realise the pretty basic fact that there are consequences to them.

...that is rather harsh....how can most buy a property without taking on debt?...it is not the debt but the type of debt and whether that debt is being repaid and can be afforded.

Which is probably why he said "thought about it" instead of simply just "didn't take on the debt."

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...that is rather harsh....how can most buy a property without taking on debt?...it is not the debt but the type of debt and whether that debt is being repaid and can be afforded.

..just because governments, large corporates and certain countries choose to cook the books in an unsustainable way doesn't mean we all have to. ;)

but its not just the mortgage debt mortgages are the cheapest they have ever been .

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...that is rather harsh....how can most buy a property without taking on debt?...

Well maybe they should have done their sums, looked at whether or not prices were sustainable and concluded that the best option was not to actually buy at that time ... like many people here did?

it is not the debt but the type of debt and whether that debt is being repaid and can be afforded.

... and that is the problem. Many people stupidly took on levels of debt which they couldn't realistically be sure of repaying in order to buy an asset that they should have been able to see was grossly overpriced if they had done a modicum of research.

There's a little concept called "personal responsibility" which appears to have gone out of fashion in recent years. Now it's time for those who spurned it to face the music, despite the best efforts of the government to bail them out.

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Well maybe they should have done their sums, looked at whether or not prices were sustainable and concluded that the best option was not to actually buy at that time ... like many people here did?

... and that is the problem. Many people stupidly took on levels of debt which they couldn't realistically be sure of repaying in order to buy an asset that they should have been able to see was grossly overpriced if they had done a modicum of research.

There's a little concept called "personal responsibility" which appears to have gone out of fashion in recent years. Now it's time for those who spurned it to face the music, despite the best efforts of the government to bail them out.

You hit the nail right on the head thats exactly what i was trying to say ;)

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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