The number of distressed home sellers contacting property reco-very firm Property Portfolio Rescue in Q1 2010 was 20% higher than in Q1 2009.
The company says some of those who were previously only marginally affected by the downturn are now being tipped over the edge, falling into debt and mortgage arrears as they underestimated the importance of constraining spending.
Nick Hopkinson, director of PPR, says: “With the added uncer-tainty of a new tax environment around the corner purchasers are sitting on their hands, leaving sellers stranded.
“Those in need of a quick sale are having to seek help to prevent further financial loss, but for some it is already too late.”
The Council of Mortgage Lenders is predicting that there will be 53,000 repossessions in 2010, and Liberal Democrat shadow chancellor Vince Cable has warned of a looming repossessions crisis.