Repossessions fall 14%: surveyors

Repossessions fall 14%: surveyors

Total home repossessions fell by 14 per cent year-on-year across England and Wales, with the north/south divide closing, although 76 per cent of northern towns still have a higher rate of repossessions than average.

E.surv analysis of court-ordered repossessions by postcode showed that there were 2.5 repossessions per 1,000 households in the north during the first half of 2014, compared to 1.7 repossessions per 1,000 households in the south.

This compares to 2.9 repossessions per 1,000 households in the north and two in the south during the first half of 2013, meaning the gap closed by 16 per cent year-on-year.

Richard Sexton, director of the chartered surveyor firm, explained the geographical gap is lessening, helped by a “jobs boom” across the country and continued low interest rates, allowing homeowners the chance to pay down debts whilst accessing cheaper mortgage repayments.

He said: “Savers may have suffered while the base rate has stayed low, but for those on the edge of the repossessions cliff, it has allowed them the respite needed to claw back their finances and move back into financial security.

“Moving forwards, the Mortgage Market Review will ensure that future borrowers are able to keep up with repayments, despite fluctuations in interest rates. It is heartening to see repossession rates falling in those areas which have previously been most deeply affected.”