8:50am Saturday 6th September 2008
TWICE as many people in Watford are seeing their homes repossessed as debt-ridden families struggle to keep up with their mortgage repayments.
As the credit crunch continues to bite, the Watford Observer can reveal the number of people who have lost their home between April and June has almost doubled compared to the same period last year.
Indeed we can reveal Watford saw the biggest increase in the number of repossessions in any town or city in Hertfordshire, Bedfordshire and Essex.
Government figures for mortgage repossessions, released this week, have revealed 254 people lost their homes in the town in the three month period.
That represents a 47 per cent increase on the number of repossessions heard in the county court during the same 12 weeks in 2007.
Across the whole of the south east only two other places – Norwich and Newbury – have seen a sharper increase.
The rise brings the total number of repossessions in the first six months of the year to 491, an increase of 29 per cent on 2007.
Dr Shamim Jagot, manager of Watford’s Citizens Advice Bureau (CAB), said the number of people struggling with bank loans and credit cards was also “sky high”.
The CAB’s money advisor currently helps 63 clients manage their debts.
According to the bureau those customers share a shocking £1.39 million collective debt – an average of more than £22,000 per person.
And with many mortgage lenders and banks hiking up interest rates Dr Jagot says more and more people are struggling to make repayments.
He said: “What is happening is that creditors are not really listening or wanting to negotiate.
“We are finding it is becoming more and more difficult to negotiate with lenders and some people have a lot of debt.”
The bureau estimates that credit card debts account for 43 per cent of the people they have advised, while another 23 per cent of debt was owed as bank loans.
“The amount of debt people owe is just phenomenal and it is a question of just trying to make ends meet”, Dr Jagot added.
Watford Borough Council this week confirmed the town’s social housing list has nearly doubled in the past two years and now holds more than 3,000 applications.
Housing and homeless charity Shelter meanwhile has said it has seen a 55 per cent increase in the number of people seeking help with repossessions in the past six months.
Nationally, the Government cut stamp duty this week to encouraging the market.
Nevertheless Watford’s MP Claire Ward, described the latest repossession figures as “the real impact” of the global credit crunch.
She said: “This is why the government is very keen to try and help people and I hope the Government announcements this week do that.
“I would encourage people to get help as soon as they are in trouble, do not leave it until banks are calling in the money.”
Estate agents in the town have, however, reported that buyers are still looking to move into Watford.
Stephen Kirsch, a partner of Rennie & Co in Clarendon Road, added that the strength of the rental market gives those struggling to pay mortgages another alternative.
He said: “Although the numbers have doubled we are still talking about a relatively low number of properties.
“And on the up side, if people want to sell their home we have the buyers out there.”
n Watford CAB is open on Mondays, Wednesdays and Thursdays from 10am to 4pm. Those with financial problems can also contact the telephone advice service on 01923 234949, on Tuesdays between 1pm and 4pm.
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