UK austerity leading to repossessions in Scotland

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UK economic decline is leading to the threat of repossessions across Scotland

Scottish News: UK austerity leading to repossessions in Scotland

by Leah Pears and Alex Porter

As the UK economy declines and Chancellor Osborne’s austerity measures kick in, one in four Scots are now believed to be just one pay cheque away from losing their homes, according to the latest research by homelessness charity Shelter Scotland.

The research found that roughly 647, 000 Scots in jobs could be a single salary cheque away from having their house repossessed or losing their current accommodation.

 

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The charity which surveyed 619 adults between December 11 and 13 also found that only half of households would be able to continue paying for their home after three months.

This news comes after the UK Chancellor’s autumn budget statement, where he announced welfare cuts of around £3.7bn and holding benefit increases below inflation. Experts claim the measures will leave the poorest 10 percent of the population bearing the brunt of the squeeze.

The UK government is facing an out-of-control debt crisis after years of having taxpayers pay for the UK’s corrupt financial system through bailouts and allowing banks to print new money which drives up food and energy prices for ordinary families - a backdoor wage cut.

Children and families hit hardest by UK austerity and repossessions

The increased cost of living and welfare benefit cuts have led to family budgets being slashed, taking away their safety nets.

Last year Shelter Scotland revealed how 280,000 households in Scotland were prepared to risk their homes to pay for the cost of Christmas.

"These new figures show just how close to the edge many thousands of Scotland's households are, with little or no chance of things getting better any time soon," said Graeme Brown, Company Director of Shelter Scotland.

"Our worry is that with the economy continuing to struggle and families facing welfare cuts, that number could be much higher next year.”

More homeowners are now facing the prospect of repossession, with increasing numbers of people across the UK with mortgage arrears of more than 10 percent of their outstanding balance.

Shelter Scotland claim that there are a variety of factors putting the pressure on homeowners including seeking help too late, mortgage holders not sticking to agreed payment plans, lack of income security, not qualifying for the Mortgage to Rent scheme and homeowners not being able to afford the cost of putting their homes up for sale.

Homeowners and tenants across Scotland are being urged to check that their insurance policies are up to date in case of severe weather this winter to save on the costs of emergency repairs to their homes.

The new figures come amid Shelter’s Christmas campaign which highlights the plight of families and the over 5,300 children who will be homeless this Christmas, often living in poor quality, damp and dangerous temporary accommodation.

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published this page in News 2012-12-21 12:16:12 +0000