Despite the rapidly increasing house prices that were noticed during 2006,
the threat of a UK housing price crash persists. It is reported that
increased levels of personal debt, the chance forof interest rate rises and
fears over the stability of the sub-prime mortgage market cancould lead to thea
crash ofin housing prices. It is noted that the UK mortgage market hikedincreased
almost 21 per cent from 2005 to 2006. This signifies a jump from £288.4
billion to £344.9 billion. Moreover, the growth in the average unsecured
debt has been an ever increasing phenomenon in the UK. It has grown 5.4%
per year since 2002, going from £3,670 to £4,522. So, it is not surprsingsurprising to
see the number of repossessions going from 10,310 to 17,000 from 2005 to
2006.