Property Repossession has held Steady
The level of property repossession in Britain has held steady in the third quarter of 2011. 9200 properties were repossessed, compared to 9100 in Q2, according to the Council of Mortgage Lenders (CML).
In total, over the course of 2011, 27500 properties have been repossessed and that's down on 2010. The CML predicts there will be fewer repossessions in 2011 than last year. Considering the economic doom and gloom, and thinking back to the 1990s when repossession was endemic, these numbers are quite remarkable and seem to be bucking economic trends. Moreover, unlike rent arrears which are growing, mortgage arrears are falling and are at a lower level than 2010. We wonder how long this will last as household budgets continue to be squeezed, incomes remain static and inflation rockets.
Paul Smee, of the CML, comments: "The fall in the number of mortgages in arrears, and the stable picture on repossessions, are testament not only to the beneficial effects of low interest rates, but also to effective arrears management, and good communication between lenders, borrowers and debt counselling organisations. "Against the backdrop of widespread financial uncertainty sweeping both the UK and the wider European economies, it is impossible to be sanguine about the future influences that households may face. But lenders will do their utmost to help borrowers keep their homes, whatever pressures emerge. Anyone worried about their mortgage should seek early advice and talk to their lender: these figures firmly show that repossession does not have to be an inevitable consequence of mortgage arrears."