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Chart of the Day: repossessions down, but for how long?
Repossessions in 2011 fell to their lowest level in four years but the Council of Mortgage Lenders warns of tough times ahead.
Markets
by Victoria Bischoff on Feb 09, 2012 at 11:54
Repossessions in 2011 fell to their lowest level in four years, according to new figures.
A total of 36,200 properties were repossessed last year, the Council of Mortgage Lenders (CML) said – the lowest annual total since 2007. The CML originally forecast around 40,000.
| Year | Total mortgages outstanding | Total mortgages possessed | Total possession rate (%) |
|---|---|---|---|
| 2007 | 11,852,000 | 25,900 | 0.22 |
| 2008 | 11,667,000 | 40,000 | 0.34 |
| 2009 | 11,393,000 | 48,300 | 0.42 |
| 2010 | 11,310,000 | 37,100 | 0.33 |
| 2011 | 11,220,000 | 36,200 | 0.32 |
However, while the overall amount of repossessions fell last year, the number of buy to let properties repossessed increased significantly. Some 5,900 were repossessed last year, up from 4,700 in 2010.
Mortgages taken into possession (%)
In contrast, when looking at the number of mortgages in arrears in 2011, while there was again a decline in the overall number of compared to 2010, this time the owner occupied sector experienced a much higher level than the buy-to-let sector.
Mortgages more than three months in arrears (%)
Despite the good news, the CML warned that while arrears and repossessions were fairly stable through 2011, worsening unemployment, the ever-rising cost of living and wider economic difficulties suggest this is only a short-term breather for households struggling to meet their mortgage payments.
The CML anticipates there will be around 45,000 repossessions and 180,000 mortgages in arrears of 2.5% or more by the end of the year.
2 comments so far. Why not have your say?
derek farman
Feb 09, 2012 at 12:45
Well it is interesting that in the USA many key lenders are being sued for over zealous repossession. That to me is a good move bearing in mind many lenders were carelessly flinging money at house buyers .
Lenders should be made to stand by their decisions and give house owners time to sort things out .
report thisjoe stalin
Feb 09, 2012 at 13:00
OMG is there no end to this stream of positive news coming out of the housing sector? It can't be true somebody is having a laugh and making it all up. in reality things are really really very bad.
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