09 November 2023
If you are covering the new mortgage and landlord possession statistics, please see the following comment from Charlotte Nixon, mortgage expert at Quilter:
"Navigating through the financial headwinds of the current economic climate, homeowners and renters are confronting stark realities, with increasing legal actions reflecting a surge in housing insecurity.
"Mortgage possession actions, indicative of lenders seeking to recover properties from borrowers who have fallen behind on payments, have escalated. Specifically, mortgage possession claims, which are initial filings by lenders to obtain court permission to foreclose on properties, increased by 14% to 4,185.
"This uptick is a clear signal of the rising financial pressure on homeowners. Meanwhile, mortgage possession orders, the court's judgment that lenders may proceed with foreclosure, have risen by 18% to 2,923, underscoring the gravity of the situation for those struggling to pay their mortgages.
"However, in a contrasting trend, actual repossessions, have decreased by 18% to 622. This suggests some homeowners are finding ways to avert the final act of losing their homes, possibly through renegotiated payment arrangements or other forms of assistance. Potentially initiatives like the Mortgage Charter have helped to decrease repossessions providing a sliver of hope that there may be a growing cushion against the ultimate displacement from one's home, despite the uptick in initial legal proceedings.
"Renters are not faring much better, with landlord possession actions indicating a more straightforward trajectory towards housing insecurity. Landlord possession claims have seen a significant upswing of 19% to 24,938, and repossessions executed have climbed by 11% to 6,080. These numbers are not just statistics; they represent individuals and families grappling with the possibility of losing their homes amidst the crunch of higher rents and higher bills.
"These figures represent the heightened financial distress that is becoming increasingly widespread across regions, with possession claims rising in every area. London stands out with the highest rates of both private and social landlord claims, a testament to the acute cost pressures in the capital.
"It is crucial for those at risk of falling behind on mortgage or rent payments to seek advice, engage with financial support services, and explore every option to maintain their housing security. The message is always don’t bury your head in the sand; seek help."
