Communities Secretary Eric Pickles has issued a reminder to struggling homeowners to seek help early to have a better chance of staying in their homes.

His call came as new research shows that the number of home owners who have given up their home due to financial difficulties has been much higher than solely shown by repossession statistics.

The research from the Centre of Housing Policy (University of York) shows that whilst thousands have lost their home through voluntary or compulsory repossession, many more people have been forced into selling their home, before any court action is taken against them because of financial difficulties.


It shows that financial difficulties that led to home owners selling up were often triggered by relationship breakdown and other financial commitments such as loans secured on the property. They found that households often took out extra loans, or took the least helpful action to deal with their situation, because they acted without seeking help and advice to tackle their debts.

Mr Pickles said: "I am determined that those who need help are able to get it - and that includes the need to tackle the record budget deficit to avoid the need for rapid increases in interest rates.

"The research lays bare the many hidden victims of the recent recession, homeowners who have given up and left home ownership, when getting practical advice before matters got too overwhelming might have kept them in their homes. That's why we are working with organisations like Shelter and Citizens Advice so people know where they can go to get a grip on their finances and can make informed decisions about their future."

(CD)