Homelessness ‘a result of debt legacy’

A rise in homelessness in Britain is a consequence of the legacy of debt in the UK that has arisen in recent years, housing minister Grant Shapps has said.

Mr Shapps said the repossessions that have led to a 14 per cent year-on-year increase in the statistics "underline how the debt laden economy we inherited is leaving a legacy of hard-up households across the country".

However, he stated, the government has introduced measures to help, such as the £20 million Preventing Repossessions Fund to help councils to intervene and keep people in their homes.

And he noted the number of homeless individuals in Britain is lower this year than in 28 out of the last 30 years.

Council of Mortgage Lenders figures for repossessions showed that the overall tally in 2011 (36,200) was the lowest annual figure since 2007.

However, it noted, the final quarter of the year saw 8,500 homes taken back, five per cent more than in the same quarter of 2010 and a possible indication that the annual total will increase in 2012.

Posted by Paul Thacker