Top of page.

Tom Brake

Liberal Democrat MP for Carshalton and Wallington

Navigation.
Content.

Local Repossessions Up A Third In One Year Shows Housing Bubble Is Close To Bursting - Burstow And Brake

November 7, 2005 12:00 AM

Latest figures uncovered by local MPs Paul Burstow and Tom Brake show a steep increase in the numbers of mortgage possession procedures issued in the local county court.

The number of possession actions entered into in the three months to September 2005 by Croydon County Court - which covers Sutton, Merton, Croydon, Bromley and Lambeth - rose to 565, up from 421 from the same period in 2004 - a rise of 34%.

The number of orders made in the three months to September 2005 rose to 168 from 126 - a 33% jump.

Analysis of the figures by the Liberal Democrats shows that across London a repossession order is made every 37 minutes and an action is entered into every 24 minutes.

Commenting on the figures Paul Burstow, MP for Sutton and Cheam, said:

"These figures are very disturbing. While they are at low levels compared to the early 1990's there are clearly big problems ahead.

"Banks and building societies need to ensure that when individuals take out mortgages they are fully aware of the risks that are involved and of the relevant insurance products."

Carshalton and Wallington MP Tom Brake added:

"At long last the Chancellor has now accepted there is a bubble in the housing market. Now he needs to recognise that for many homeowners it is sadly bursting and that he needs to take action.

"These figures demonstrate the complete absence of an adequate safety net in the mortgage market. The government needs to urgently look at the payment protection insurance markets as products are often over-priced and contain too many exemptions."