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The number of families councils consider at serious risk of having their home repossessed has increased steadily in recent months, CLG figures show. Data published by Eland House on 30 June exposes the impact of rising unemployment and negative equity during the recession, showing increasing numbers of households receiving state support, ranging from advice to offers to buy properties. The number of households approaching local authorities with mortgage difficulties increased from 1,085 cases in April to 1,139 new cases in May. The number of households considered ‘at risk of repossession and in a priority need category' also increased – from 452 in April to 556 in May. A senior CLG source said the increases ‘could be partially attributed to early intervention programmes introduced by councils and Whitehall departments'. Thousands of homeowners have received free advice on managing financial problems. A CLG spokesman this week confirmed more than 200 repossession orders had been withdrawn by banks after families sought advice. The Council of Mortgage Lenders recently revised its estimate for repossessions in 2009 from 75,000 to 65,000, but thousands will still lose their homes in coming months. While the CLG and councils are helping households with mortgage advice and other support, just six families have received full support through Whitehall's flagship Mortgage Rescue Scheme. When she launched the MRS in January, former housing minister, Margaret Beckett, predicted 6,000 families could benefit within two years. The CLG spokesman said ‘most families' received ‘more suitable support' through other Whitehall programmes. But Sarah Teather, Liberal Democrat housing spokeswoman, said the MRS was too bureaucratic and involved ‘huge amounts of paperwork'.

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WHITEHALL

Repossessions up as slump hits home

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