Mortgage claims, orders, warrants and repossessions increased significantly in the fourth quarter at the end of last year when compared to the same quarter in 2021.
According to new figures published by the Ministry of Justice (MoJ), mortgage possession claims increased from 2,570 to 3,160 (23%), while orders saw a rise from 1,650 to 2,482 (50%).
Figures also showed that the number of warrants climbed from 1,121 to 2,112 (88%), while repossessions by county court bailiffs saw a 134% increase from 313 to 733.
The MoJ data showed that this pattern was repeated for landlord possession actions. When compared to the same quarter in 2021, landlord possession claims increased in Q4 2022 from 14,436 to 20,460 (42%), orders from 6,865 to 16,158 (135%), warrants from 4,285 to 8,717 (103%) and repossessions from 2,729 to 5,409 (98%).
Increases in possession claims have been recorded in all regions, although private and social landlord claims remained concentrated in London – with nine and three of the highest 10 claim rates respectively.
Commenting on the data, senior personal finance analyst at interactive investor, Myron Jobson, said: “The increase in mortgage possession actions and repossessions is skewed by the city watchdog ordered cessation of repossession activity at the start of the COVID pandemic and the rollout of payment holidays on a grand scale for those who needed them.
“History has shown that repossession can rise steeply during periods of economic stress. Such was the case in the wake of global financial crash. Today, an uptick in mortgage rates to levels not seen since the credit crunch, workers incomes failing to keep up with spiralling household costs and a stuttering economy leave workers struggling to keep up with repayment obligations in a precarious position. Something like a sudden illness or job loss could leave them homeless.
“The property repossession figures also don’t make for happy reading for landlords, who are aware that their tenants circumstances can change overnight. But repossession activity might not rise as far this time because of the current low level of unemployment and tighter lending regulation, particularly around affordability and forbearance.”
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