New research has revealed the places in Wales with the highest proportions of homeowners at serious risk of losing their homes through repossession.
Shelter Cymru analysed Ministry of Justice statistics and Welsh Government data for 2010/11 to calculate the rate of claims leading to possession orders per 1000 private households for every local authority in Wales.
The results show that Blaenau Gwent is Wales’ top hotspot, having the highest rate of homeowners at risk, followed closely by Merthyr Tydfil, Rhondda Cynon Taff, Caerphilly and Neath Port Talbot.
If statistics for Welsh and English local authorities are combined, Blaenau Gwent ranks 4th highest in England and Wales, Merthyr Tydfil 11th and Rhondda Cynon Taff 12th.
The research also confirmed a strong link between unemployment and possession orders, with the top five hotspots also having the highest rates of economic inactivity.
Director of Shelter Cymru John Puzey said: “Many thousands of people in Wales are struggling with a toxic combination of rising living costs, high inflation and stagnant wages. All it takes is one misfortune such as illness or redundancy for people to find themselves in serious financial difficulties and at risk of losing their home.
“The Welsh Government’s Mortgage Rescue Scheme was extremely effective and helped many hundreds of families to stay in their homes, but it was always known that funding was time limited. When it ended in April this year, it was made clear that local authorities had the discretion to use their Social Housing Grant to run their own schemes according to local need.
“It is encouraging to see mortgage rescue schemes operating in Neath Port Talbot and Caerphilly and we urge authorities and housing associations in other hotspot areas to seriously consider similar schemes as part of a range of spend-to-save options including independent housing advice, which has a proven track record for providing value for money.
“At this especially challenging time, every local authority and housing association should be placing a high priority on all forms of homelessness prevention, especially early advice and support to people in financial difficulties. “We know only too well from our casework how distressing and traumatic it is for people to face the threat of losing their home. Besides this, repossession also puts a huge strain on statutory services * every household accepted as homeless and in priority need costs the local authority between £5,300 and £6,400 per case per year. At a time of public spending cuts, local authorities are ill-placed to deal with any increase in this area.
“It is absolutely critical that anyone struggling to pay their mortgage gets independent advice as soon as possible. There is a lot that can be done to prevent them losing their home, even up to the point of court action.”
Lindsey Kearton, Policy Manager at Consumer Focus Wales, said: ‘Access to timely, specialist debt advice is critical for people worried about their finances. Even if the situation hasn’t reached crisis point, being able to talk to an independent debt adviser can make a huge difference to how someone copes with and manages any financial difficulties.
‘Keeping track of spending, prioritising important payments such as housing-related costs, and generally being aware of what money you have coming in and going out are all important aspects of effectively managing your finances. As household finances come under increasing pressure due to rising living costs and concerns about job security the demand for budgeting advice is only likely to increase. The roll-out of the face-to-face Money Advice Service should hopefully go some way to addressing the gap in provision.”
Rank Local authority
1st Blaenau Gwent
2nd Merthyr Tydfil
3rd Rhondda Cynon Taff
4th Caerphilly
5th Neath Port Talbot
6th Newport
7th Flintshire
8th Torfaen
9th Bridgend
10th Wrexham
11th Carmarthenshire
12th Swansea
13th Conwy
14th Cardiff
15th Vale of Glamorgan
16th Isle of Anglesey
17th Denbighshire
18th Monmouthshire
19th Pembrokeshire
20th Gwynedd
21st Powys
22nd Ceredigion
