Repossession figures worsening in northeast, warn Liberal Democrats

9.30.00am BST (GMT +0100) Tue 13th May 2008

Alarmed by news that the number of homeowners facing repossessions in the North East has risen dramatically in the last ten years, and more than doubled in the past two years, Liberal Democrat MEP for the North East Fiona Hall said,

"This is another blow for the ordinary people of the North East, who are suffering because of Labour's refusal to recognise the dangers in the housing market. An estimated 5,000 homes within the region faced the threat of repossession last year alone, and this figure looks set to rise as everyday living becomes more expensive.

"Despite the fact that the region's economy is growing fast, the fact is that the gap in income between the North East and the affluent South East, continues to widen*. This is mirrored in mortgage possession claims, the first step towards repossession. Across the UK as a whole, the rise in possession claims was 16% last year, but by contrast the number in the North East rose to 20% - with 26% in South Shields, 40% in Bishop Auckland and 41% in Gateshead.

"Repossession must only ever be the very last resort. This Government must stop having vague discussions with mortgage lenders and insist that lenders seek all possible alternatives before taking such action."