According to CLM (Council of Mortgage Lenders), housing sales may only hit around the 860,000 mark in the coming year – which is a drop on the 1.6 million sales that accrued in the year before the recession kicked in. It’s the likely consequence of house repossessions experiencing another rise in 2011. Figures are showing that as many as 180,000 home owners may well fall behind with their mortgage repayments as the New Year wears on.
There’s worry among housing market professionals that lenders are hiding their own fears about further weakening in the housing sector – despite the figures above showing an entirely different picture. The CML believes that repossessions in the UK will hit around the 40k level, a slight rise in figures in comparison to 2010 – which will settle at around 36,00.
However, there are others that genuinely believe that the market may remain a bit more buoyant – providing certain key factors are brought into play:
- interest rates remain low
- job losses don’t increase
Unfortunately, with the current shake-up going on in the coalition, spending cuts, job cut-backs and more, that may become more of a pipe dream than a reality. Still – there’s little or no evidence of lenders tightening up in the last quarter of 2010, which is a positive sign, and it’s unlikely that new changes will deliver more shocks into the system than we’re currently aware of.
Providing Government cuts don’t hit mortgage rescue schemes and other funded nationwide repossession aid, more home owners will avoid house reposessions than won’t. The simple answer to the potential changes in 2011 is this: if you’re sat worried or concerned about what the next twelve months will bring to your door – now is the time to evaluate.
If you’re already experiencing difficulties, or know your job may be under threat, it’s advisable that you act sooner rather than later. House repossession orders don’t occur overnight and providing you plan, seek guidance and professional help – you may be able to head off the loss of your home.
Happy New Year. Hopefully.