Only a small number of homeowners will benefit from repossession schemes

A number of industry officials have expressed concern over the various government initiatives that have been launched recently in order to help struggling homeowners and keep the rising number of repossessions at a minimum. Some officials believe that only a very small number of households will benefit from these schemes, which means that many homeowners will still have problems trying to hang on to their homes.

One industry group has predicted that over the course of the recession around 145,000 households could end up losing their homes through repossession, and in addition to his repossession orders could be filed against a further quarter of a million or so homeowners. Officials want the courts to be able to intervene with regards to which homeowners can stay in their homes because they are making efforts to repay their arrears.

One official said: “Past experience suggests that the exercise of judicial discretion could prevent a large number of repossessions through the use of suspended repossession orders during the period of the current housing crisis.”

The report stated: “These proposals will only help those households which are considered by the courts to be able to repay their arrears and their mortgages. The risk of moral hazard will therefore be minimal.” The shadow housing minister said: “The measures introduced will simply not help the vast majority of the families facing repossessions.”