U.K. Reports Sharp Rise In Home Repossessions In First Quarter Of 2008

London, England (AHN) - England and Wales registered a substantial increase in home repossessions for the first three months of 2008, according to data from the Ministry of Justice.

Landlord-initiated repossessions reached 38,688 for the first quarter of the year, up by 16 percent compared to a year ago. Court-mandated repossessions were at 27,530, a 17 percent climb.

More repossessions are likely to take place throughout the rest of 2008. The Council of Mortgage Lenders estimates repossessions could reach 45,000 in 2008, more than five times the 2004 level of 8,000 cases.

To assist distressed Britons about to lose their home, the government mandated county courts to offer free legal aid for homeowners battling a repossession order.

Housing Minister Caroline Flint said despite the rise in repossession cases, it is still low compared to the average level of repossessions in the 1990s. "Most lenders are now passing on interest rate cuts and we want to see the rest follow as soon as possible. But for the minority of owners who may need support and advice now, we want to ensure it is there for them in the right place and at the right time," Flint told the London Telegraph.