BusinessCompany NewsRising house prices spell more bankruptcies.

Rising house prices spell more bankruptcies.

Rising house prices are likely to cause an increase in personal insolvencies, a leading insolvency practitioner has warned today.

The Department of Trade and Industry today revealed insolvencies were down 5% on last quarter and 7.3% on the same period last year.

But as the Halifax bank announced house prices rose by another 0.7% last month, the high price of housing, particularly in London and the South East led PricewaterhouseCoopers partner Patrick Boyden to warn that bankruptcies will rise again.

He said: ‘Higher house prices require larger deposits which many people struggle to find.

‘First-time buyers are in a particularly awkward spot. They are desperate to move onto the property ladder before prices rise still further and so might buy before they can really afford it.

‘It’s tempting to borrow money for a deposit even if this breaks mortgage conditions, but this could mean problems in the future.’

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3d Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

4m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

4m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

8m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

7m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

7m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

7m Emma Smith, Managing Editor