Possessions of homes and rental properties have surged recently, highlighting ongoing financial pressures.
- Mortgage possession claims jumped by 56%, reflecting a significant uptick in housing market challenges.
- Orders and warrants for mortgage possessions also saw notable increases in the third quarter.
- Landlord possession actions followed a similar trajectory, with claims and repossessions on the rise.
- Specific regions, such as London, have driven these increases, though some areas like Wales saw declines.
Mortgage possession statistics for the third quarter of 2024 have shown a stark increase. Data from the Ministry of Justice indicates that possession claims rose sharply from 4,188 to 6,525, marking a 56% increase compared to the same period last year. Orders associated with these claims rose from 2,923 to 4,038, reflecting a 38% rise. The issuance of warrants increased from 2,345 to 3,119, a growth of 33%. Additionally, repossessions carried out by county court bailiffs increased substantially from 635 to 861, marking a 36% increase.
Landlord possession metrics have also exhibited upward trends. The number of claims rose slightly from 24,922 to 25,418, an increase of 2%. However, there was a more pronounced rise in orders, which grew from 17,987 to 19,254, a 7% increase. Warrants for landlord possession saw a notable increase as well, rising by 17% from 10,044 to 11,763. Repossessions increased from 6,167 to 6,942, an increase of 13%.
Geographically, the rise in landlord possession claims was principally driven by London, whereas regions such as Wales and the North West experienced declines in such activities. Conversely, mortgage possession claims rose across all regions. One operational change of note is that the median time from claim to mortgage repossession has decreased significantly to 43.9 weeks from 57.8 weeks last year. On the other hand, the median time for landlord repossessions increased slightly to 24.5 weeks from the previous 23.0 weeks.
Nathan Emerson, CEO at Propertymark, pointed out the challenges faced by home buyers, especially first-time buyers. He highlighted that despite a general downward trend in inflation and interest rates over the year, many individuals still face lasting financial challenges. Emerson noted, “With the average house price in the UK being £293,000, many buyers, especially first-time buyers, will struggle to step onto the housing ladder.” He further remarked on upcoming changes to the Stamp Duty Land Tax threshold, which will pose additional hurdles for buyers in England from April next year. Emerson expressed hope for government action to boost housing quality and infrastructure, alongside efforts to alleviate financial pressures by reducing interest rates and other costs.
The recent data underlines the continued strain on individuals navigating the housing market amidst varying regional trends and economic challenges.
