This quarter’s figures reveal a stark rise in mortgage and landlord possessions, highlighting a pressing issue in the UK housing market.
- Mortgage possession claims have surged by 56%, showcasing a considerable increase over the past year.
- Orders and warrants related to possessions have also seen notable rises, marking ongoing challenges for homeowners.
- Landlord possession actions have grown, primarily driven by increases in London despite regional declines elsewhere.
- The timeframes for repossession processes have shifted, reflecting varied impacts on landlords and homeowners.
In a significant development, data from the Ministry of Justice has disclosed a 56% increase in mortgage possession claims, climbing from 4,188 to 6,525 compared to the previous year. This rise underscores the escalating challenges facing the housing sector. Alongside this, possession orders have increased by 38%, and warrants have seen a 33% rise, signalling ongoing distress within the homeowning community. Furthermore, repossessions executed by county court bailiffs have jumped by 36%, from 635 to 861, demonstrating the tangible impacts of financial strains on individuals.
Landlord possession actions reflect a similar trend, with claims increasing slightly from 24,922 to 25,418, marking a 2% rise overall. Orders have witnessed a 7% increase, while warrants climbed by 17%, illustrating the mounting pressure on landlords. Repossessions in this sector have also risen by 13%, highlighting a significant impact on property owners, primarily in London. Notably, Wales and the North West have experienced declines in these actions, presenting a varied geographical picture.
A key factor in these developments is the change in repossession timelines. For mortgage cases, the median time from claim to repossession has decreased to 43.9 weeks, a reduction from 57.8 weeks in 2023. In contrast, the process for landlord repossessions has extended slightly, now averaging 24.5 weeks from the initial claim compared to 23.0 weeks previously. This shift may indicate differing levels of urgency and process efficiency between mortgage and rental sectors.
Nathan Emerson, CEO at Propertymark, provides context to these figures, stating: “Considering both inflation and interest rates have tracked downward across the year, many people are still potentially battling longer-term effects, and some are ultimately struggling.” This statement highlights the ongoing economic pressures even as certain financial indicators improve. Emerson also points to the significant barriers that persist for first-time buyers, particularly given the average UK house price of £293,000 and the impending changes to the Stamp Duty Land Tax threshold. He calls for governmental action to increase housing supply, thereby reducing financial strain on consumers.
The rising figures in possessions underscore the urgent need for economic measures to alleviate housing market pressures.
