"Crisis" as 1,002 local families lose homes in 2007

11.01.49am GMT Thu 14th Feb 2008

More than 1,000 families lost their homes in South West Hampshire last year because of a growing "homes crisis" over mortgage payments, according to Eastleigh MP Chris Huhne.

Mr Huhne said that the figures showed clearly that there had been an alarming spurt in home repossessions in the fourth quarter of last year where the number in Southampton county court was up 24 per cent and in Winchester up 21 per cent.

"There is a real bite on local incomes and large numbers of people are now struggling to pay the high debts they took on in the good years" said Mr Huhne. "Our area is in the eye of the national housing storm with far sharper increases than elsewhere".

New figures secured by the Liberal Democrats show that 1,002 orders for home repossession were issued by Southampton and Winchester county courts in 2007. The unchanged total for the whole year disguises a sudden spurt in the fourth quarter.

"More than 1,000 home repossession orders means more than 1,000 families being turfed out of the house they have lived in, often for many years," said Mr Huhne. "This is a personal tragedy through no fault of the young couple concerned."

"Many people remember the boom and bust policies of the last Conservative government that saw tens of thousands of people lose their home because they could not keep up with mortgage payments. Now it looks as though the current Labour Government has blundered into a similar mess.

"The Government has failed to ensure there are enough homes to meet people's needs. For every ten families on the waiting list in England for social housing in 1997, when Labour came to power, there are now sixteen.

"And Gordon Brown has run an economy that has been fuelled by a runaway credit boom he has done nothing to bring under control."

Mr Huhne said that the Government should be urging mortgage lenders to take a share of equity in homes rather than repossess, and the Chancellor should also do another U-turn on his proposed capital gains tax changes which will encourage buy-to-let landlords to unload their properties worsening a sagging market.