Homeowners in the North West and the West Midlands are the most likely in England to have their property repossessed, the government has suggested.
On the launch of a new advertising campaign to encourage those facing debt problems to seek advice on repossession and mortgage repayments, government statistics highlighted major cities including Manchester, Birmingham, Liverpool, Nottingham and Hull as key repossession “hot-spots”.
Other major towns including Wigan, Sunderland, Salford, Bolton, Reading, Wolverhampton, Walsall and Northampton were also highlighted as areas with high rates of property repossession.
The government is now launching an awareness campaign to highlight the steps that homeowners who are in arrears could take to avoid losing their home. These include a number of government supported schemes as well as advice on negotiating a repayment plan with a lender.
Under one government scheme that allows struggling homeowners to rent back their home from a lender, avoiding the need for eviction, around 300,000 people in England have received advice but only 15 families have completed the process. Schemes in Wales and Scotland have been more successful and plans are being discussed for a similar scheme in Northern Ireland.
Of the new awareness campaign, Housing Minister John Healey said: "When homeowners are under pressure and feel their finances are spiralling out of control, I am determined that they have access to practical and impartial advice so they can sort out their situation.”
Despite the warning, the number of properties being repossessed in the UK has shown a downward trend, with 11,400 homes repossessed in the second quarter of the year – a fall of 10% in the first three months of the year but an increase of 14% compared with the same period 12 months ago, according to the Council of Mortgage Lenders.
Some experts are however warning of an increase in the next set of figures, with the Ministry of Justice revealing an increase the number of repossession actions started in the courts.
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