Housing minister says that tackling the deficit has helped to keep repossessions down

by Aaron Strutt

May 11 2012

The Government's deficit plan is helping to keep interest rates at a record low and a secure roof over the heads of millions of hard-working homeowners, according to Housing Minister Grant Shapps.

The Council of Mortgage Lenders latest figures show that repossessions have remained unchanged from the same quarter last year.

There were 9,600 repossessions during the first three months of 2012 - unchanged from the same quarter of 2011.

Minister Shapps said that these figures underlined how Government action was helping to head off the threat of far higher rates of home repossessions predicted by a leading academic three years ago.

In his report Professor John Muellbauer of Nuffield College, Oxford, warned that, at the extreme, repossessions could hit levels last seen in the 1990s - and even in more likely scenarios could hit as many as 60,000 a year.

Mr Shapps says: "No family that has worked hard to buy their own home should be left feeling like repossession is the only option - not when there is help and support on offer to ensure that it is only ever the last resort.

"Thanks to our work to tackle the deficit, we've managed to keep interest rates at record lows, keeping pressure off hardworking homeowners, and meaning we're nowhere near the levels predicted only three years ago.

"Even though figures today show that repossession levels are stable, now is not the time to rest on our laurels. Just as the Government is tackling the problem head on I would urge struggling homeowners to do the same - I would urge them to take action and take charge, get advice early and use the support on offer."

Those having problems repaying their mortgage should visit the Directgov website: www.direct.gov.uk/mortgagehelp

March 11, 2012