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http://www.thisisbath.co.uk/displayNode.js...&folderPk=89096

11:15 - 05 June 2006

Intrepid homebuyers are increasingly seeking to beat high house prices and snap up property going under the hammer. Auctioneers are reporting a rapid growth in interest, both from those hoping to enter the buy-to-let market and others seeking a home to live in,
mostly because Britain's massive £1 trillion consumer
debt has led to an increase in home repossessions
.
Home repossessions rocketed by 22 per cent in the second half of 2005, with many being sold at auction. That figure is set to rise by another 12,000 this year.
You will also find homes that are being sold off by local authorities, trusts and historic landowners.
Property auction information service the Essential Information Group says about 35,000 properties will be sold at about 800 auctions around the country this year, but with the events' popularity rising,
potential buyers will not be spoilt for choice.

The top of the debt mountain has been reached. :lol:

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The top of the debt mountain has been reached. :lol:

Don't bet on it. I reckon with IRs going up, we will still see people using debt to live off. Until it all

collapses around them.

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I have been looking into this of late. This article is really sensationalised and misses the point. When you look at the stats for properties taken into possession, the increase for 2005 is not all that significant: (Source CML)

1998 33,870

1999 29,990

2000 22,870

2001 17,310

2002 11,970

2003 7,700

2004 6,030

2005 10,310

The frightening aspect is the number of possession orders being made. Although lenders are not taking possession after the granting of a possession order in such high numbers as they have done in the past, if the granting of the order is seen as decision of the Court that the lender is entitled to possession because of the borrower's default, the picture becomes extremely gloomy:

For precise stats: (http://www.dca.gov.uk/statistics/mpstats/2006/nat-q1.pdf)

Actions Entered Orders Made

2001 67,000 47,000

2002 64,000 41,000

2003 67,000 40,000

2004 77,000 46,000

2005 115,000 71,000

"In the first quarter of 2006, the number of actions entered rose by 29% from those in the first quarter of 2005."

My point is that the number of possession sales is currently very low. However, the potential is for it to sky rocket, even with only a very small rise in UK interest rates, or with no increase at all.

Bear in mind that at the height of the last recession (for mortgage repossession purposes) in 1991, there were 74,000 possession orders made. We are not too far off from that peak.

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Bear in mind that at the height of the last recession (for mortgage repossession purposes) in 1991, there were 74,000 possession orders made. We are not too far off from that peak.

So why are so many possession orders being made, but fewer houses taken into possession? Are banks applying for possession orders at an early stage of handling arrears? Are banks storing up trouble to try and maintain high prices? What?

Billy Shears

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So why are so many possession orders being made, but fewer houses taken into possession? Are banks applying for possession orders at an early stage of handling arrears? Are banks storing up trouble to try and maintain high prices? What?

Billy Shears

i asked about this on an old thread and was told that there has been new legislation which means that most possession orders and up as "suspended repossessions", cos the debtor has showed a willingness to pay back the debt. i'm sure the repossion data shows the number suspended repossesseions too. Charlie the Tramp will know..

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i asked about this on an old thread and was told that there has been new legislation which means that most possession orders and up as "suspended repossessions", cos the debtor has showed a willingness to pay back the debt. i'm sure the repossion data shows the number suspended repossesseions too. Charlie the Tramp will know..

How does this work in the long run? If the buyers can't afford to buy their house, does the interest keep on mounting, or does it get suspended. If it keeps on mounting, then trouble is being stored up for later. If the banks lose out on interest, or only receive a tiny amount of it, then that cuts their margins, and they need to claw that back somehow.

Do you have a link to the previous thread?

Billy Shears

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How does this work in the long run? If the buyers can't afford to buy their house, does the interest keep on mounting, or does it get suspended. If it keeps on mounting, then trouble is being stored up for later. If the banks lose out on interest, or only receive a tiny amount of it, then that cuts their margins, and they need to claw that back somehow.

Do you have a link to the previous thread?

Billy Shears

As seen in the previous thread

i asked the same question...

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The interest keeps on mounting, as I understand it. I cannot find any reliable statistics to show exactly how many of the orders are suspended (which means that the debtor must pay the ongoing liaility and a proportion of the arrears) but I believe that it is just under half of the orders made.

It would appear that the number actually possessed is currently relatively low, but they do seem to take a while to shift when the mortgagee is in possession. Perhaps they are not too bothered about selling in a rising market!

Edited by nimmmm

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I remember last time around, that many when they went for auction were going for pea nuts, there was a lovely house around the corner from me, the poor sods were in the middle of renovating it, an older couple got it for next to nothing, I also knew of another couple who got one in, the last people cut off all the light fittings.

It's not a pleasant business

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i asked about this on an old thread and was told that there has been new legislation which means that most possession orders and up as "suspended repossessions", cos the debtor has showed a willingness to pay back the debt. i'm sure the repossion data shows the number suspended repossesseions too. Charlie the Tramp will know..

I remember this being brought up a few months ago. I think it was frugalista that knew about it? The gist was that the banks got so much bad press the last time around they changed the way they do things. So now they can take posession of the property without throwing people out on the streets and getting negative press but if the time comes where they absolutely must evict them then it is a lot easier to do because they have already been through the process in court.

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  • 302 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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