Callous minister makes light of home repossession
The UK government was at its remote, out of touch and patronising worst this week when its representative, the Minister for Housing John Healey, was quoted on the BBC claiming that, ‘for some people, having their home repossessed can be the best option.’
The latest figures from the Council of Mortgage Lenders (CML) said 46,000 homes were repossessed in 2009, which was the highest number since 1995.
The Minister’s comments provoked a barrage of criticism from almost every quarter, including the opposition, debt charities and members of the public with intimate knowledge of home repossession.
The basis of the criticism was that the Minister’s choice of words displayed his total lack of empathy and understanding for those going through this most gut-wrenching process. Even if repossession makes financial sense it is never the ‘best option’ for those struggling to keep their homes.
A spokesman from the charity Shelter said, ‘any struggling homeowner must seek advice early to ensure they have all the facts and can make an informed decision about what action is best for them. Tragically, however, there are exceptional instances, often as a result of irresponsible lending in the first place, where repossession is the only viable option to avoid pushing people into higher levels of debt.’
The Conservatives are now calling for Mr Healey to apologise to families who have lost their homes for so foolishly disregarding the financial and emotional toll that home repossessions can reap upon families.
However, on a more optimistic note, the CML has said this week that both the number of repossessions and the number of mortgages ending the year with arrears equivalent to at least 2.5% of the outstanding balance had fallen below their forecasts.
The fact that mortgage arrears and possessions did not rise as much as feared in 2009 is thought to be testament to the effect of low interest rates and a great deal of concerted effort by lenders and the advice sector, prompted by government, to help borrowers to address financial difficulties when they occur.
As a result, the CML said its current forecast for 2010 of 205,000 arrears cases and 53,000 properties taken into possession could be “a little pessimistic”.
The underlying story here is of the tragedy that is repossession being confined to the lowest number of people possible during the recession. The fact that a government minister can be so callous towards the victims of that tragedy is perhaps not surprising considering the length of time the Labour party has been in power. It is the firm belief of the markets, however, that it’s now time for a change and it will not be in power much longer.
