Despite UK government assurances of help, home repossessions are forecast to rise substantially. The economy is lumbered with recession and all that it entails, including falling house prices and job insecurity.
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In fact UK repossessions are likely be up 50% on last year, to around 45,000. It is a worrying trend and comes at a time when households are having to pay more for almost everything. Since the oil price peaked it has returned to more normal levels. However, it seems that OPEC is to reduce supplies to maintain prices, and it may not be long before that is again passed onto the consumer in rising fuel costs. People were told that energy prices, that is to say gas and oil, were high because the price was linked to the price of oil. They are quite rightly questioning why, when the oil price dropped didn't energy prices follow as quickly as they did when it went up?
It seems that getting more for less is almost encouraged by the government. Nobody would deny that conserving energy, thereby assisting with global warming is an admirable objective. However, it seems that the more you save the more you pay simply to maintain gas and oil company profits at whatever levels the energy companies say is necessary. It may be necessary for shareholders, and director's remuneration, but the poor old consumer seems last in the queue.
There are government-sponsored schemes whereby insulation can be obtained with various grants and monetary incentives. Again not many would disagree with the theory, but if the end result simply means that people will be paying twice as much for half as much energy, to support energy companies profit objectives, it makes it easy for them and hard for everybody else. Almost a licence to charge what they like!
It wouldn't be nearly so bad if everything wasn't going up, when for lots of people the threat of getting behind with their mortgage, or worse, is on the cards. There are many who believe that the government is not doing enough to help at this difficult time. Insofar as energy is concerned they are probably right.
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Mortgage Bubble - Double Trouble
Mortgage Bubble - Double Trouble
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