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Goodbody warns of hike in repossessions in wake of personal insolvency laws

ONE of the country’s leading stockbrokers has warned of a hike in repossessions after TDs and Senators signed off on new personal insolvency laws.

The Personal Insolvency Bill has passed through the Dail and Seanad and will now go to President Michael D Higgins for his signature.

Goodbody Stockbrokers forecasted a “substantial pick-up” in repossessions, particularly in the buy-to-let sector, despite the legislation having measures to protect the family home.

“This is likely to pressure house prices, though our loan loss models anticipate higher peak to trough declines in the buy to let sector than the owner-occupier sector and larger costs of disposal,” the company said in its daily morning wrap.

Goodbody pointed out that the level of mortgage restructuring at the banks has been accelerating in recent months ahead of the new legislation.

Justice Minister Alan Shatter is confident that the new legislation will be up and running by March.

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