CML Revises Its Forecast for Property Repossessions

The forecast of the Council of Mortgages Lenders for the number of property repossessions in the UK was revised lately. Last year the trade organisation for mortgage lending predicted that 75,000 people will lose their homes in 2009; this June, the CML revised the forecast and reduced the figure down to 68,000. The latest estimates of the body suggest that no more than 48,000 people will have their properties repossessed. Despite the fact that the number of repossessed properties, which now stands at the level of 11,700, is 5% higher than at the same time last year, went only 300 up from 11,400 in the second quarter of 2009. It is also 8% lower than in the time period between January and March 2009. Data on repossessions released by the Ministry of Justice on November 12th is different from CML’s, yet it also shows that the tendency is the decline in the number of repossessions. According to the figures published by the Ministry of Justice, the number of repossessions in the 3rd quarter of 2009 fell by 7% to 24,337. The report also suggests that the number of repossessions in the 3rd quarter of 2009 is 37% lower than at the same time last year. CML director general, Mr. Michael Coogan, believes that the slow pace of increases in the number of property repossessions can be explained by low mortgage interest rates and banks’ desire to negotiate with borrowers facing financial difficulties. Mr. Coogan added that an increase in repossessions can only be expected if lenders suddenly raise mortgage interest rates. Meanwhile, according to the forecast of the Council of Mortgage Lenders, the number of repossessions in 2010 will total to 53,000 as there is a high risk of cuts in public spending and tax increases.