Increasing repossessions lead to more auctioned houses

It appears more Brits than ever are struggling to repay their mortgages after research from the Royal Institute of Chartered Surveyors (Rics) revealed more houses than ever are being sold at auction.

Some 5,120 properties were sold at auction in the second quarter of 2007, the highest number for two years and an increase of 22 per cent.

It is thought the increased number of houses going under the hammer is due to the growing number of homes that have been repossessed, with rising interest rates to blame for the deterioration of affordability conditions, according to Rics.

Oliver Gilmartin, Rics economist, predicted that "with the full impact of interest rate rises in 2007 yet to filter through into higher mortgage costs we continue to expect a rise in the number of homes going under the hammer into 2008".

"The commercial property market may also see a rise in lots offered at auction as tougher conditions return to the high street as consumers tighten their belts," he continued.