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Tuesday, January 31, 2023

Home Repossessions Have Decreased – South London News

The latest market analysis from real estate experts, housing bureaushowing that the number of homes repossessed by moneylenders has fallen significantly since the Bank of England started raising interest rates in late 2021, bucking the expected trend of more and more people losing their homes as mortgage payments rise.

In December 2021, the Bank of England began raising interest rates in an attempt to stabilize the country’s economy in the wake of the pandemic, a trend that will continue into 2022 as energy prices and the war in Ukraine continue to cause economic turmoil.

As a result of these increases, monthly UK mortgage approvals have fallen by -19.2% since December 2021, as borrowing becomes more expensive and potential homebuyers decide to delay their ambitions until a more stable time.

But even so, the impact on the housing market isn’t entirely negative, as the rate hike hasn’t yet led to an increase in home repossessions, as research from the Home Buyers Bureau shows. Instead, there was actually a significant decline.

There were 1,739 repossessions in England and Wales in the eight months to December 2021.

Available data shows that in the months following the rate hike, this fell by -26.1%, to a total of 1,285 repossessions.

The biggest decline in repossessions was reported in the east of England, where the pre-acquisition rate rose by 70 to just 19 now. The drop was -72.9%.

In the Southwest, the 114 withdrawals in the eight months preceding the hike fell to 73 in the months after; a -36% drop. In the Northwest there were 403 repossessions, a -32.5% drop to 272 repossessions.

There were also large falls in repossessions in the North East (-30.8%), South East (-28.2%), London (-25.7%) and West Midlands (-22.7%).

Meanwhile, Yorkshire and the Humber (-2%), Wales (-6.4%) and the East Midlands (-9.3%) recorded smaller falls.

Chris Hodgkinson, managing director of the Home Buyers Bureau, said: “Rate hikes are never good news for homeowners with mortgages, so seeing repossessions has not become more frequent as a result. , which will bring a sigh of relief to many.

“But the sharp drop in repossessions doesn’t necessarily mean that homeowners have no problems making their mortgage payments. Rather, a key factor is that lenders are advised to avoid hasty repossessions in the event of insufficient payments.”

Image: Pixabay

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