Repossessions fall but affordability fears remain
Repossession numbers drop but agents are warned not to read the figures as an all clear.
Warnings have been issued following the release of the latest repossession data.
The number of homeowner possessions dropped in the three months April to June this year, according to UK Finance.
It meant a total of 1,150 mortgage properties taken into possession by lenders, which is 14% down on the same period a year ago.
Landlord repossessions
Landlords saw a sharper drop in repossessions despite concerns surrounding the introduction of the Renters’ Rights Act.
A total of 630 buy-to-let mortgage properties were repossessed during the same period, 22% fewer than the previous quarter and 20% below last year.
Ian Harris, NAEA Propertymark President, warns agents not to read the numbers as an all-clear on household finances.
He says: “While these figures are encouraging, it is important not to lose sight of the financial pressures that continue to affect homeowners and landlords.
“The reduction in mortgage arrears and repossessions is welcome, but affordability remains a challenge for many across the housing market.”
The reduction in mortgage arrears and repossessions is welcome, but affordability remains a challenge for many across the housing market.”
Most possessions relate to older mortgage, the UK Finance data revealed.
Harris adds: “Early engagement is key to helping those facing financial difficulty. This is particularly important for landlords, where financial pressures can also have wider implications for the availability of homes in the private rented sector.
“Continued collaboration between lenders, agents and policymakers will be important in supporting those at risk and maintaining confidence and stability across the housing market.”
David Miller, Divisional Director at Spicerhaart Corporate Sales, says: “Quarter after quarter, the tremendous, proactive work of lenders continues to shine through.
“Even where we’ve seen elevated interest rates in recent years, borrowers have shown that they are managing their commitments well.
“Where this will be tested is those existing borrowers coming to end of more favourable deals and moving onto much higher rates.
“Lenders need to be vigilant and stand ready to provide support where it is needed – for those get ready to refinance and as the implications of the Middle East conflict potentially start to bite.”
