The number of new repossessions in Q1 2011 increased for the first time in a year and was close to a fifth higher than the number recorded in the final three months of 2010, according to the Financial Services Authority's (FSA) first quarter mortgage lending report. This means repossessions have risen by 17%, signalling bad news for families.
“Last year even though we were just out of recession, repossessions fell quarter on quarter but with the economic recovery stalled, government support for families struggling to make their mortgage repayments cut and more and more people having to claim job-seekers’ allowance, repossessions are starting to rise again.
“The government is letting people down on housing - repossessions are up, homelessness is up and rough sleeping is starting to rise again. We’re risking a vicious circle where by cutting too far and too fast - hitting families and costing jobs - we end up with more people on benefits and fewer in work paying taxes making it harder to get the deficit down. People will rightly be asking where is their plan B?”