Number of home repossessions reaches lowest rate for 40 years
THE NUMBER of home-owners having their properties repossessed was at its lowest levels in nearly 40 years in 2018, trade association UK Finance has said.
There were 4,580 home-owner repossessions in 2018, marking the lowest annual total since 1980, when there were 3,480 repossessions.
Fewer people are also falling behind with their mortgage repayments compared with a year earlier.
There were 77,610 home-owner mortgages in arrears of 2.5 per cent or more of the outstanding balance in the fourth quarter of 2018, five per cent fewer than in the same quarter in 2017.
Some 24,020 home-owner mortgages were in the most severe arrears band, with arrears of more than 10 per cent of the outstanding balance in the fourth quarter of 2018. This was a one per cent decrease compared with a year earlier.
Meanwhile, there were 4,690 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the fourth quarter of 2018 – a figure unchanged from the previous year.
Jackie Bennett, director of mortgages at UK Finance, said: “Home-owner repossessions reached their lowest level in almost 40 years in 2018, aided by a historically low interest rate environment and lenders showing continued flexibility when working with borrowers in financial difficulty. Mortgage arrears also remain at historically low levels, with the majority of borrowers continuing to repay their mortgages in full and on time each month.”
Jonathan Harris, of mortgage broker Anderson Harris, said there was “no room for complacency”.