This backs up something I was told yesterday by a locksmith who said business is booming as it did in the late 80's/early 90's. He said he's dealing with 2 or 3 requests to change locks following repossessions A DAY.

Mary Allen, London, England

No amount of debt advise will stop the spiralling cost of living under this Government. The government doesn't mind spending billions bailing out banks but for house owners and there families it seems you’re on you own to sink or swim.

Gill, London, England

I for one am not surprised by this news, many people have over stretched themselves. Many people have forgotten that a house is a place to live in not just a way of making quick money. Hopefully this will put things back on a more even keel.

John, London,

The property market can only get worse with so many of the city boys/girls getting the chop over the coming year.

R, London,

Remember. Housing demand is financially backed demand at a certain price, not just a desire to own you own home. We all demand Ferraris too, but don't all buy one. Supply and demand are not the same as instinctive desire.

You can't have it if the bank won't give you the means to buy it.

Liam, London, UK

The GREAT plan is now coming into affect! hold on tight people!

Andrew T, England, UK,

The concept of low cost government housing is something that is needed in all communities. If planned and controlled properly, the quality of life for many people would improve dramatically. The lessons of the past in running such schemes should be applied to the new estates administation controls.

Jim Wills, Brisbane , Australia

It is with no doubt that we are at the start of the most significant property value down turn of the last 30 years.

Max, Richmond, Uk

What goes up must come down. Its not easy but its the cycle of all kind of economies, as we are not Oil Rich countries like Saudi Arabia who effectively can 'not worry' about trade, and focus on incoming tourism income.

Its an economy, where the citizens are always just a statistic.

richmond, Stoke-on-Trent, UK

better and better

riccardo, brussels,

People were led to believe that they too could have a home and live like a king - no matter how low-end the job they did. Ten years of apparent growth led people to further believe they don't need a pension, they can buy a second flat and rent it out and the money will come rolling in. oh dear......

John, London,

The trains/pubs in London are still packed. Luxury suppliers are still selling 'stuff'. We're all going to retire on £90,000 a week.

yey!

John, London,

Disagree with Mr Benson.

Lenders have a huge influence on inflation via the mortgage products they make available. The more products (i.e. up to 100% LTV) the bigger the market that can make acquistions...therefore increased demand and inflation.

Reduced products, reduced demand = deflation

Phil, Widnes,

Demand for house's at sellers asking price is now close to zero.People havn't got the money to buy if the banks arn't lending.

stephen hulton, eure, france

Well, I remember mortgage interest rates of 14% about 26 years ago, when I got my first mortgage ! Boring as it sounds , I walked 4 miles to work and back every day, ate a lot of cornflakes, didn't have a TV , didnt turn the heating on unless it was 0C - but I held onto my dream and kept my home.

Rita, Mulhouse,

Many comments are right; high multiples of salary and inaffordability of property for new entrants to the market. But the UK market is NOT falling; this is largely a south of england issue and a market readjustment from past excesses . It is not true in Scotland/Edinburgh where prices still rising.

Mark, Edinburgh, Scotland

House price inflation (or the lack of it) is not caused by the lending policies of banks, however poorly they may have structured and implemented those policies. Housing supply and demand determines price and therefore affordability. Who has failed? We need look no further than our political masters

Mark Benson, Kingston upon Thames,

No more boom and bust, eh Gordon?

Steve, Spalding, UK

Everything is linked: no buyer, no sale; no sale, no survey, no conveyancer, no estate agent, no staff, no HIPs (drop this idea now!), no profit for the lenders; no more to lend; no credit to advance,no money to shop; no money, no high street boom; no boom, less staff; no buyer. No buyer, no sale

Willo, Milton Keynes,

If no profit to be gained from lending mortgages, people would borrow from real savings of other people or businesses, no more profit banks! - thus introduction to a real economy that is not susceptible to boom and bust. House prices would fall to real affordable levels and so no more repossessions

Abdullah Dawood, Reading, Berkshire

I agree with the guy who points out that a 6.5% mortgage is normal , get used to it for the rest of your lives.

John, Southampton,

Repossesions will undoubtedly increase as lenders have taken an increased appetite since the mid 90's of lending to people with poor credit (CCJ's etc.).

Strip out the 'high risk' clients and that will give a better indicator as to whether general market is getting worse.

Phil, Widnes,

A great deal of this inability to keep up payments stems from the loss of well paid manufacturing jobs which have been replaced with low paid service industry employment. It's all very well for Gordon Brown to brag about the number of jobs created but they don't pay enough to finance house purchase

A.Williams, Cradley Heath,

What concerns me, is the percentage of mortgages that have been granted under 'self assessment' rules. Surely a significant percentage of mortgages were sold on this basis, with mortgagees over-stating their incomes in order to get on the property ladder? This will compound the crisis....

evan, london, uk

The recent 'ecenomic growth' which is funded by a huge cash influx into the public sector has left this country with the largest national deficit in Europe. If Labour leads by example and gets itself into this much debt are we surprised that the Nation has followed......

dave, bath, uk

This is largely a result of extending salary multiples. The 3.5 multiple was obviously more prudent because it allowed for increases in fuel/ food prices.

barry dupont, brighton, east sussex

Trevor: The problem is not liquidity forcing a tightening of the belts... It's the malpractise of consumers, banks and house builders forcing an over extended credit use to get on the ladder.

Prepare to reap what you have sown.

Paul Sullivan, Chester,

All this misses the point. The problem of interbak rates at 5.8% v the BoE's 5% is NOT a problem...6.5% as a mortgage rate is not be very high

6.5% looks high as we are vulnerable...that is the problem! Getting mortgages is harder as deposits rise and multiples fall BUT this is a return to NORMAL

Trevor, South east,

Gordon Brown's 10 years of fiddling the inflation figures has now come to fruition. If he had included housing costs in the figures we wouldnt be in this situation now.
He was told about what would happen 4 years ago, but didnt take notice of the these advisors.

louis blanc, liverpool, Uk

Interest rates have fallen.

Mortgage availability is governed by income.

Mortgages are only given to those who can afford to pay, and there is a healthy leeway.

Those with problems managing their money should go for debt management advice given FREE at their local CAB.

J D S, Cardiff, Wales

I am very concerned that Gordon Brown will sink even more and more money into the housing market in a vain attempt to prop it up and to prove his deluded "no more booms and busts" mantra.

Gordon's folly is getting very expensive for us all.

harry e, London,

No, house prices are NOT down 0.9%. That is comparing quarterly figures. House prices are down 3.7% comparing April 2008 to April 2007. Go to the Halifax press release and check it yourself.

Dr. Keith Anderson, Durham, England

It’s about time the country as a whole started to accept the property market has to get a whole lot worse before it can get better.

No number of financial incentives such as lowering interest rates is going to give birth to a new set of gormless buyers ready to jump onto a shaky property ladder!

patrick carey, saltaire, england

Totally agree. If you can't afford it, don't buy it. Looks like this generations about to get the kick up the backside it needs.

Nick, London,

Figures are not at a record high! It is the highest figure since data were collected so does not include troughs in the 80's and 90's when repossessions were far higher. Lenders have the data for this period and should reveal it, since levels were believed to be much higher.

Michael, London,

Rather than spending £9m on debt advice after the event, would it not be better to spend it on debt education at school? Prevention is always better than cure and usually costs less.

Huw Sayer, Norwich, England

Steve, "assets that cannot be sold back (holidays)" are not assets they're expenditures.

Paul, Ashford, Kent

What a waste of £9 million, for extra funding regarding debt advice and legal support. This government certainly knows how to solve a problem!! Houses have been unrealistically priced for years and the government should have been concerned about the consequences then.

Nancy, Reading, UK

Did people really think that if they did not pay their mortgage the house would remain theirs. We are not a nation of house owners we are a nation of mortgage payers. You don't own it until the last payment is made.

Frederick, London, UK

Steve,

Not a painful decade (10 years) is coming up.

But, a painful century (100 years) is coming up.

Now, Every penny matters! Don't drop them.

Uma Shankar, UK,

yup. well said Paul - home equity withdrawal to purchase assets that cannot be sold back (holidays) or assets that depreciate (cars)....I think a painful decade is coming up.

Steve, London,

History repeating itself. I wonder how many of those now facing repossession indulged in mortgage equity withdrawl to finance cars, holidays etc.

Paul, Coventry,