The number of repossessions increasing, house prices falling, unemployment rising and the building constructions coming to an almost complete stand still – UK homeowners are going to find that keeping a roof over their head becomes much harder to achieve.
A report from The Times believes that the downward spiral from the housing market will lead to an increase in the number of people who have to rent, instead of own, a property.
By the end of 2008, it is predicted that at least 45,000 homes will have been repossessed. This is a rise of 70% from the previous year and the number of those suffering from mortgage arrears has increased by 22%.
First-time buyers are finding it increasingly difficult to take their first step on the housing ladder, as banks are reluctant to give out mortgages to anyone without a high deposit and an unblemished credit rating.
Four million people are waiting to be housed by local authorities, with this figure expected to rise by a further million in 2009. The waiting list shows no sign of decreasing as, according to the report by The Times, the Government has failed in building enough council or social homes over the past 11 years.
These figures are not set to look any rosier in the coming year. Social-housing construction is almost at a standstill and about £500 million worth of new home schemes were rejected in November 2008 alone.
Charities supporting the homeless are urging the government to address this problem or risk the number of homeless people rising to new levels, and housing experts believe that there the lack of housing could lead to the comeback of 1960s high-rise buildings to accommodate the needs of the British public.