CML predict house repossessions `will hit 45,000 in 2012`

Next year will see an increase in the number of houses repossessed due to unpaid debt, according to the latest forecast by the CML (Council of Mortgage Lenders).

According to the CML`s latest property market predictions, house repossessions will probably rise to 45,000 next year - an increase of 5,000 repossessions on predictions for 2011.

The CML also predicts that property sales will fall this year to 840,000, before experiencing a modest recovery to 900,000 in 2012. The number of borrowers classified as in arrears of 2.5% or more will also probably rise to 180,000 this year and remain the same throughout next year.

Interest rates are expected to stay at 0.5% for most of 2011, with a modest rise next year. This could see the rate at which borrowers can pay back their mortgage debt affected once again, during what the CML has called a `difficult juncture` for homeowners.

An expert at debt management company Gregory Pennington said: "Paying back mortgage debt during this time of economic uncertainty can be difficult for some people, but it`s important to remember that repossession is an extreme measure and can be avoided if you take early action."