Up to 60,000 'face repossession'

Julia Goldsworthy says that families are 'weighed down by debts'

Sixty thousand homes in the UK are at high risk of repossession, according to analysis by the Liberal Democrats.

The study focuses on home owners that are spending 75% of their disposable income on mortgage repayments.

The number of households involved is double the amount that had their homes repossessed last year, it claims.

A government spokesman said it was "important to keep this in context", as the repossession rate is still only about a third of that in 1991.

'Weighed down'

Julia Goldsworthy, Lib Dem Communities and Local Government spokesman, said thousands of families in the UK are being "weighed down by massive debts".

"As living costs rise and the credit crunch starts to bite, families are forced to cut back on essentials in order to keep a roof over their heads," she added.

This Government has buried its head in the sand, and overstretched families are paying the price Julia Goldsworthy Lib Dem local government spokesman

"There are almost a million fewer social homes to rent than during the last recession, while the number of families waiting for housing has skyrocketed.

"This Government has buried its head in the sand, and it is overstretched families that are paying the price."

Ms Goldsworthy suggested a potential "housing crash" could be averted through "a national network of financial advice centres".

"The government should also work with the banks to ensure that as many families as possible can stay in their homes, either through payment holidays or part ownership schemes."

The government recently pledged �76m to continue the provision of free face-to-face money advice until 2011.

E-mail this to a friend

Printable version