London “king of the repossessions castle”

London is not only in the grip of its highest repossession rate in more than ten years, it also has one of the highest rates in the UK, according to research for the Evening Standard.

And there is no sign of the trend reversing any time soon as house prices and borrowing costs continue to rise.

Stuart Jennings, from Fitch, which carried out the study, told the paper: “If, as expected, London prices continue their relentless upward trend, this coupled with the latest round of interest rate rises should see London retain its dubious crown as king of the repossessions castle.”

Vince Cable, the Liberal Democrats’ Treasury spokesman, said more needs to be done by the government to avoid the “disastrous levels” of repossessions in the early 1990s.

Some experts have expressed concern that City bonuses are inflating London house prices, making it increasingly hard for people on lower incomes to afford the cost of a mortgage.

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