Big 'repossessions wave' forecast for property market
Date posted: 18 Jun 2009
The UK is set for a "big repossessions wave", according leading international economist Ian Sheperdson.
Repossessions have fallen in recent months, but are set for growth as unemployment rises, Mr Sheperdson told delegates at the Chartered Institute of Housing Conference and Exhibition on June 16th.
There were 12,800 repossessions by mortgage lenders in the first quarter of 2009, according to recent figures from the Council of Mortgage Lenders (CML), although the CML expects to revise down its 75,000 repossessions forecast for the year.
However, Mr Sheperdson suggested that predicting a slowdown in repossessions could be premature, indicating that the most recent fall "is partly a consequence of the big drop in interest rates".
He said: "I think it will probably peak in 2011, but it is not going to come barrelling down again any time soon.
"Quite where it is going to peak, I don't know, but I would imagine that we would be looking at quarterly averages of around the 25,000 to 30,000 mark."
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