Surge in middle-class homeowners seeking help
Monday 13 April 2009
The collapse in the housing market and the economic slowdown is increasingly taking its toll on middle-class homeowners, a company that specialises in buying properties from cash-strapped sellers said today.
Property Portfolio Rescue (PPR), which describes itself as a property recovery specialist, said more than 3,000 homeowners had requested help during the first three months of the year and that inquiries from middle-class homeowners with properties worth more than £500,000 had soared by 220 per cent since last year.
PPR said many buy-to-let landlords with portfolios of properties were being forced to sell some of their holdings after finding it impossible to refinance mortgage deals. However, the majority of homeowners seeking help from the company were hoping to avoid having their properties repossessed.
The firm said it expected 70,000 home to be repossessed this year, which would represent an increase of more than 60 per cent on 2008. Nick Hopkinson, the company director, said: "This recent activity provides a clear indication that the cycle of recession is really biting now across the whole UK economy."
He said that more small buy-to-let landlords would get into financial difficulties during the course of the downturn because lower mortgage costs were likely to prove temporary.
"When inflation drives interest rates up again, landlords face a mortgage cost timebomb unless they reduce debt now or save against this inevitable reality," said Mr Hopkinson.
Last Thursday, the Bank of England finally ended a five-month period of regular interest rate cuts, leaving the base rate on hold at 0.5 per cent.
- 1 Students heading off to 'charity challenge' grounded at Gatwick after travel firm goes bust
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- 5 Like Jennifer Aniston, I am no less of a woman because I am childless
Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
Californian drought is so severe it's 'causing the ground to move'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...
£400 - £500 per day: Orgtel: Test Manager - Banking - West Yorkshire - £400-£5...