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Can Government reduce repossessions?
Considering the current economic climate and the state of the housing market, any new government policy is met with scepticism from the general public and, more particularly, homeowners. The housing crisis in the USA has had serious knock-on effects on the UK market, with mortgage approvals hitting new lows whereas repossessions climbed in the opposite direction. However, a recent measure package has been designed with the intention of relieving some of the pressure on the housing market and to get it moving forward once again.
In the past 12 months, house sales have more than halved, with mortgage approvals down a massive 71%, and forecasts show the trends to continue until the end of this year at least. With these two factors considered, the average house price has fallen dramatically as people desperately seek to get a buyer from somewhere in the market. Obviously a small fall in house prices in nothing compared to the fate greeting some people who struggle to meet their mortgage repayments, which is home repossession.
Some market analysts claim that homeowners who are struggling with repayments should be offered help by mortgage companies so that they avoid the dreaded fate of house repossession. However, what form this help could come in is still open to discussion, and many people are turning to help from companies that allow you to sell and rent back your home, such as Swift Capital. The basic premise here is that a homeowner will receive a certain percentage of their house’s market value and will then remain in the house as a sitting tenant.
Whatever the future of the housing market holds, whether current trends are set to continue or plateau towards the end of the year, homeowners are certainly suffering at the moment, and in increasing numbers.
