UK repossessions are set to fall during the first half of 2011 but will rise in the second half of the year, according to financial outsourcer HML.
HML came to the conclusion after analysing the mortgage accounts of 320,000 mortgage customers. It says there will be 15,557 repossessions up to July 1 and a further 17,700 for the rest of the year.
In total HML predicts 33,257 houses, or 0.3 per cent of all mortgaged properties, will be repossessed across the UK during 2011. Figures from the Council of Mortgage Lenders show there were 36,300 repossessions from first-charge mortgage lenders in 2010, which accounted for 0.3 per cent of all mortgages.
Northern Ireland is expected to be experience the worst rate of repossessions in the UK – 2,350 or 0.83 per cent of all mortgaged properties. HML says this reflects the 10.2 per cent fall in house prices that has occurred in the region in the last year.
The South West is expected to see the lowest proportion of repossessions in the UK – 1,557 or 0.18 per cent of all mortgaged properties.
HML chief commercial and finance officer Neil Warman says: “Despite the challenging economic environment, the downward trend in repossessions we saw last year is set to continue for the first half of this year. However repossessions will then begin to rise during the second half as a number of macroeconomic factors start to impact on homeowners and influence lender behaviour.”