21st April 2010: PPR - Repossessions will top 50,000 in 2010

Nick Hopkinson, Director of Property Portfolio Rescue (PPR), responds to the ONS labour market statistics, released today:

“The number of unemployed people has “officially” exceeded 2.5million today, despite the government’s best efforts to manipulate the figures down. This is the highest quarterly figure since 1994 and makes any talk of an immediate economic recovery look like a fantasy. Many more people are only able to get part time work or are suffering reduced hours, making the true impact on household incomes far worse.

“Worryingly, inflation shot up to 3.4% this week bringing nearer the likelihood of interest rate rises. When added to the tax increases and spending cuts that loom large after the General Election, the pressure on homeowner finances is only going to heighten in coming months. Lack of lending remains acute and the real truth behind the CML’s headline claims of increased gross mortgage lending in March versus February is that lending in the first quarter of 2010 as a whole is the lowest this decade. Against this backdrop, it is highly likely that home repossessions will top 50,000 again in 2010.”