NEW FIGURES HIGHLIGHT PROBLEMS FOR HOMEOWNERS IN SOUTH HAMPSHIRE

Eastleigh Liberal Democrats <enquiries@eastleighlibdems.org.uk>

NEW FIGURES HIGHLIGHT PROBLEMS FOR HOMEOWNERS IN SOUTH HAMPSHIRE - HUHNE

August 14, 2006 12:00 AM

The 61 per cent rise in personal bankruptcies in the Southampton area in one year is a sign of mounting stress in the local economy, according to Eastleigh MP Chris Huhne. This is more than double the 26 per cent national rate of increase.

Responding to the latest statistics from the Department of Constitutional Affairs which also show a rise in the number of mortgage possession procedures issued in Southampton and Winchester and from the Insolvency Service showing a large rise in personal insolvencies recorded in Southampton, Chris Huhne, MP for Eastleigh said:

"These figures show very worrying trends, as there is growing number of people in South Hampshire who are finding it harder and harder to cope financially.

"The combination of rising unemployment and record levels of personal debt is spelling catastrophe for many hard working families. The number of bankruptcies recorded in Southampton has soared to 485 in the second quarter of this year compared with 301 in the same quarter a year ago.

Commenting on the mortgage possession procedure statistics released from the DCA Chris Huhne added:

"While mortgage repossessions remain below the levels seen in the early 1990's there are clearly big problems ahead. While not all the cases will result in repossession they give a strong indication of the extreme difficulties facing many households.

Commenting on the Insolvency Service figures Chris Huhne continued: "Last year alone there were nearly a quarter of a million calls to the National Debtline nationwide and the Citizen's Advice Bureau handled over a million problems relating to personal debt. With the cost of servicing debt now close to the high seen in the early 1990's urgent action is required.

"Individuals must be made fully aware of the risks that are involved and of the relevant insurance products available when they take out a mortgage.

"The latest rise in interest rates, on top of large rises in council tax and energy bills will only add further strain to family budgets"