UK home repossessions have soared
That’s the title of a UK Telegraph article on a report showing that UK repossession orders have increased to levels not seen since the housing bust of the early 1990s. According to this morning’s BBC 5 Live program, “Wake Up To Money,” the government claim that only a third of these repossession orders actually result in repossession and eviction. However, the rising number of orders highlights the critical nature of the bust in the UK housing market.
The article states:
Landlords made 38,688 repossession claims in the first three months of the year, up 16pc from the first quarter of 2007, the Ministry of Justice said today. Possession orders made by courts jumped 17pc to 27,530.
With the Bank of England on hold, retail sales slowing considerably, and UK banks reining in their lending, it seems likely that the housing market there is headed for a substantial bust and the economy for a full-blown recession for the first time in 16 years.