Foreclosures on the rise in Britain

LONDON, May 9 (UPI) -- Foreclosures in Britain rose 16 percent in the first quarter of 2008, coming close to levels experienced in the 1990s, the government said.

The Ministry of Justice said 38,688 home repossession claims were filed in the first quarter, a jump from 33,715 filed a year ago, The Times of London reported Friday.

In the third quarter of 1990, 37,498 foreclosures were reported, although foreclosures in Britain peaked at 51,037 in the third quarter of 1991, the report said.

"Financial pressure on many home owners is increasing," Howard Archer, chief economist at Global Insight told The Times. "And it seems certain that repossessions will trend up appreciably over the coming months," he said.

Home values are also falling in Britain. The Times reported home prices fell 0.9 percent in April from prices a year ago, the first time prices have contracted since February 1996.