Evictions up as credit crunch bites

THE number of home-owners facing eviction for failing to meet their mortgage payments in Oldham has risen by almost a third as the credit crunch continues to bite, worrying figures have revealed.

Oldham County Court issued 295 repossession orders between April and June this year, up 25 per cent on the same period last year.

Statistics released by the Ministry of Justice also show repossession claims — the first stage of the process — have soared by 33 per cent to 412 compared with the same period last year.

A claim action comes before mortgage possession orders, when a court rules that a home can be repossessed.

The credit crunch has led to more expensive mortgages which people have been struggling to pay as other household costs rise.

Across England and Wales there were 39,078 claims made to the courts for the three-month period, up 17 per cent, and the number of repossession orders made rose by 24 per cent to 28,658.

Housing Minister Caroline Flint said: “While we are not seeing repossessions on the same scale as the early 1990s, we are making sure the right advice and support is available for the minority of borrowers who may need it at the moment because of global economic pressures.”

Earlier this year, Ms Flint announced a package of measures to help those who face losing their homes, including free legal representation at county court.

But Liberal Democrat Treasury spokesman Vince Cable warned: “These figures confirm the very worrying trend on actual repossessions which were published last week.

“The level of growth of repossession orders suggests that we are on track for a repossession crisis very similar to the early 1990s.”