Repossession at seven year low
According to new figures, reposession cases are at their lowest level since 2007.
The news comes at the same time that Bank of England governor Mark Carney said the UK housing market is generally recovering, on the BBC’s Andrew Marr show.
Richard Sexton, director at e.surv chartered surveyors, said: “Falling homeowner arrears and repossessions are another barometer that underlines the steady economic recovery…we’re seeing a tangible impact for many ordinary households up and down the country, with repossession cases at their lowest level since 2007.
“The UK’s economic recovery has largely been attributed to low unemployment and rising house prices, as well as record low interest rates.”
Mr Sexton commented, saying: “For the most squeezed households at the bottom the mist is finally starting to lift too, and the number of borrowers in severe arrears has fallen for the first time year-on-year since 2010.”
However, these new low figures have not spread nationwide, with a regional disparity showing that the North suffers from 33 percent more reposession cases than the South, widening the divide to its biggest in six years.
Even London is not exempt, with Croydon, South London being the ninth worst area in the UK for reposessions.
Mr Sexton also advised caution when assessing the future of the market, saying: “The Bank of England granted many borrowers a temporary reprieve when it signalled that interest rates are unlikely to rise before next year’s election. However an eventual base rate interest rise remains inevitable, and with it looms the prospect that homeowners, and particularly first-time buyers, will suddenly have higher mortgage repayments.
“We have made leaps forward over the past year, but we may yet see some steps back before the market fully recovers.”