Thursday, November 27, 2008

Recession bites



The news that repossession actions in Wales have risen by more than one fifth in a year is disturbing but not unexpected. Over 8,000 homes are under threat. The figures are especially bad in Merthyr Tydfil and in parts of Mid and North Wales. The Conwy and Colwyn County Court has seen a 77% rise in repossession cases over the year.Merthyr County Court has seen a 41% rise, while the figures for Wrexham and Carmarthen are both up 40%. It offers me no confort to record that these figures are still not as bad as the 1990s but they are getting there.

Of course not all court actions lead to the loss of a home. Roughly four in ten are suspended for further action such as the renegotiation of the mortgage or to allow time for an external intervention.

The Welsh Assembly Government has a mortgage rescue scheme in place that may help but details about its existence or how to access it are still too little known. Many people remain in denial of their worsening situation until it is too late. The one thing that needs to be added to the Government's strategy for alleviating this appalling situation is some direct interaction with the courts so as to increase the number of repossession orders deferred for alleviative action.

I raised this with the Deputy Housing Minister in Committee some weeks ago. I look forward to seeing whether she has been able to do something about it.

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