Homes are being repossessed at record levels despite the Government telling banks to do this as a last resort

City Desk
The FSA has today announced that 11,054 homes were repossessed by banks in the three months to the end of June, in comparison to 6476 this time last year.

The Government has put pressure on the banks to repossess at the last resort, but the number of people falling back with mounting arrears has increased and the numbers of homes repossessed are set to increase.

To add more gloom another drop in houses has been recorded this time 8% has been wiped off the value of homes.  It has been estimated that 1.2 million homeowners will face negative equity this year.

Mayor Johnson has waded into the debate over the economic crisis engulfing the nation in his weekly column in the Daily Telegraph by saying that "This isn't some disaster movie about a virus from Mars. It's a recession, a downturn, a correction of a kind that is indispensable to any kind of human activity, and it does not require that we all go around under a special kind of credit-crunch pall. It does not mean we have to cancel all parties and talk in hushed credit-crunch tones. It doesn't mean we have to line our rooms with newspaper, get in the foetal position and live on tins: in fact, it means the opposite."