British home repossessions highest in 15 years

LONDON - Home repossessions in England and Wales rose to their highest first-quarter levels in 15 years, the government said Friday.

It was the highest repossession rate since 1993, and was up 9 percent compared with the previous quarter.

Howard Archer, chief European economist at Global Insight, said the report underlined the limited impact for consumers of a series of interest rate cuts this year. The Bank of England has lowered the rate from 5.75 percent to 5 percent.

"The overall beneficial impact is still being significantly diluted by a number of mortgage and borrowing rates being pushed up by the lack of liquidity and elevated market interest rates," Archer said.

In a series of reports earlier this month, Britain's biggest mortgage lender said the average house price fell 4 percent in 2008; the government said individual insolvencies in England and Wales rose 1.7 percent in the first quarter compared to the previous quarter; and an industry group said construction activity had slumped to the lowest level in nearly a decade.

"Rising utility bills and elevated food prices are weighing down particularly heavily on the most financially strapped people, adding to their difficulties in meeting their mortgage payments," Archer said.

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