Saturday, October 24, 2020
UK

Repossessions fall across England and Wales except London

Overall repossession cases fell by nine per cent over the period, according to new analysis of Land Registry data by WinMyDreamHome

Repossessions fell in every region in England and Wales between 2017 and 2018, except the capital.

Overall repossession cases fell by nine per cent over the period, according to new analysis of Land Registry data by WinMyDreamHome.

The largest year-on-year drop in repossession numbers was in the East of England, which saw a 24 per cent reduction in repossessions, while the South East and Yorkshire and the Humber saw them drop 13 per cent.

While London was the only region to see repossessions rise, by one per cent, the North East saw only a small improvement with a two per cent drop in possessions. It remains the nation’s repossession hotspot, with 1,817 homes repossessed, 702 homes more than its nearest rival, Yorkshire and the Humber.

The analysis also used the data for the first four months of 2019 to forecast what repossessions may look like for the year as whole. It suggests that overall cases will fall by six per cent, with the West Midlands and Wales seeing sharp falls of 29 per cent and 21 per cent respectively.

However, the year to date has been troubling for the South West ‒ it is on track to see repossessions jump by 34 per cent at its current rate.

This projected drop appears to clash with UK Finance data published earlier this month which showed a 15 per cent increase in Q2 2019.

Organiser of WinMyDreamHome and director of property developer Misuma, Marc Gershon suggested there is a “prolonged period of affordability” thanks to low mortgage rates which have helped borrowers keep pace with their month repayments.

However, he cautioned this may have encouraged homebuyers to borrow beyond their means, leaving the potential for financial difficulties in future.

He said that as a result, there is still a consistent level of property repossessions taking place across all regions and while this may continue to decline in the short-term, a change in interest rates could see many more caught out.

Important:
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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