Credit crunch brings 28% increase in families threatened by eviction
Last updated at 11:30, Monday, 29 December 2008
THE number of families being threatened with eviction from their homes is soaring.
Latest figures from homelessness charity Shelter show that 253 households in Barrow were threatened with repossession in the first nine months of this year, a 28 per cent rise on last year.
And that figure continues to increase as rising fuel and food bills mean homeowners and tenants are unable to keep up with rent or mortgage payments.
The area’s Citizens Advice Bureau has seen a huge rise in the number of families seeking help after being threatened with repossession of their homes.
Figures released in February showed that Barrow’s repossession rate was well above the county’s average in 2007.
The problem worsened this year as the country battles recession.
Colin Henderson, community housing solicitor for Citizens Advice Bureau South Lakeland, has dealt with an increasing number of people threatened with repossession of their homes from mortgage lenders in the past year.
He said: “People being unable to keep up with mortgage payments is absolutely a result of the credit crunch. A lot of people have found that they have borrowed too much. In light of the economy the courts are now a lot more sympathetic. The message that I would like to get across is that the help is out there.”
Mr Henderson believes that Barrow’s biggest problem is rented accommodation. He said: “A couple of years ago people were buying your typical terraced house as an investment to let out with a fairly low rent.
“What has happened since the summer is that the landlords of these properties have found themselves unable to afford mortgage payments on these homes. This means that even though tenants have paid their rent, they face eviction. In many cases the tenants do not find out until the very last minute about this. It is horrendous for families or other tenants and it comes as a huge shock because they have paid rent.”
Barrow Borough Council’s housing office agreed that privately-let properties posed a major problem. They expect homelessness to rise next year, when the full effects of the credit crunch are felt.
Janice Sharp, the housing office’s customer services manager, said: “It is early days for us here now, we are expecting things to get much worse next year.
“We have done everything we can to make sure that there is help for people who need it. The Citizens Advice Bureau has been given funding so that anyone threatened with repossession or eviction can speak to a solicitor.
“My advice would be not to bury your head in the sand and seek advice as soon as you are starting to struggle. There is nothing to be embarrassed about, this is happening to everyone.”
Olive Butler, regional campaign officer for the North West branch of Shelter, said: “There are still many severe shocks to come in the near future, including the sharp increase in unemployment, the thousands in negative equity and the frightening increase of buy to let mortgages that are defaulting.
“These are not just numbers, but tragic stories of people in Barrow losing their homes and facing the real prospect of homelessness this Christmas.”
For more information, call Barrow’s Citizens Advice Bureau on 01229 831715.
First published at 11:26, Monday, 29 December 2008
Published by http://www.nwemail.co.uk
Home owners are not responsible for the demise of financial markets created by the city of bankers.It is in no ones interest to evict families from homes when there is a recession.
This finacial burdon,placed on those who can least afford to lose a home,is a disgrace to our democratic society,while we send millions in aid to other parts of the world,where most of it ends up in the
coffers of those in charge of their respected countries,along with all the hangers on,who are paid for so called consultation fees.
These finaciers and bankers must be made by Law,to look after the people who have got into financial difficulty ,not of their own making.
It does not make any sense to evict,in a property market when it is in downfall.
Families and children do not deserve to suffer,because of financial miss management
by the money market.
Charities in this country earn millions,for over seas development and aid.
Perhaps charity should begin at home with our own people,instead of standing idly by
watching evictions taking place.
We still live in the Dickension age,I wonder if the work house will be brought back into G.B. for the poorest of our Kin.
Have your say
The banks take our hard earned tax's that we have worked hard for. Then after they have took our tax's from our wages they start taking our houses. The bankers can do this while receiving millions of working class hard earned pounds. They even had the cheek to give themselves bonus's .
But we have become like sheep so they can do what they want.
What time is emmerdale on again ?
Posted by John wright on 20 January 2009 at 13:21