Homelessness could be increased through struggles with mortgage repayments
January 12, 2009
According to a recent report the number of people that will find themselves struggling to make their mortgage repayments next year could lead to a rise in the number of people becoming homeless. The Council of Mortgage Lenders has already predicted that repossession levels could rise to 75,000 in 2009, and whilst the government is trying to take action to reduce the number of people being repossessed it is likely that the number of homeless people may soar over the course of the year.
Officials from the charity Crisis have said that around 9 percent of homeowners in the UK are struggling to make repayments on their mortgage, and a third of people that were polled said that within the next three months they would start finding it impossible to keep up with repayments on their mortgages if they lost their jobs. With the number of unemployed already having risen, and number expected to soar by hundreds of thousands in 2009, more and more people may find that they cannot pay their mortgage any longer.
Around 30 percent of people in middle income groups and 21 percent of those in higher income groups also expressed concern that they could lose their homes due to the economic crisis.
One official from Crisis said: “These figures are a stark warning for 2009. The economic downturn is hitting the poorest the hardest. Many are struggling to keep their homes. The situation is only made worse by pressure on jobs, with unemployment levels set to reach two million by the end of the year.”
Places such as housing associations and council housing departments have found that they are getting busier already due to the number of people at risk of losing their properties and looking for alternative accommodation.
One housing association official said: “There has definitely been an increase in the number of people looking for housing as a result of impending repossessions, and we expect to be even busier in 2009.”
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