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IVA agreements increase

25/06/2008

The individual voluntary arrangement (IVA) market has seen an increase in business recently, particularly among homeowners, new figures indicate.

IVA processor TDX said it had seen a 32 per cent rise in successful applications between January and May this year. Around £2.2 billion is repaid through voluntary agreements annually.

The number of homeowners entering into an IVA rose by nearly half (47 per cent) since January, with property owners making up 38 per cent of all IVAs this May.

Mark Onyett, chief executive of TDX, said: "The rising cost of living is not the only reason for this growth. More expensive mortgages help explain why more homeowners are taking out IVAs."

The majority of those entering into an IVA remain rental tenants, with successful applications for this sector rising 27 per cent from January to May. An increase of 14.4 per cent was seen in IVAs taken out by people living with their parents.

"We anticipate that the number of new IVAs opened in England and Wales will continue to increase in 2008," Mr Onyett added.

In related news, bankruptcies have increased four-fold in London since 2000, according to the London Daily News last week.

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