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Repossessions to fall in first half of 2011


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.”


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. One has to ask if the fall is because of genuine improvement in household finances, or is it due to a more lenient attitude from the lenders as a repossession would affect their balance sheets/capital adequacy would it not?

  2. Tyburn Asset Management 16th February 2011 at 11:01 am

    Looking at repossession figures is meaningless in an artificial environment of 0.5% interest rates. You are effectively measuring ripples in the sea whilst not taking into account waves and tide.

  3. Reposessions WILL rise sharply if interest rates increase combined with high unemployment and a country still on the brink of another recession. The Government is playing fast and lose in unknown territory.

  4. Tyburn Asset Management 17th February 2011 at 9:19 am

    Anonymous said ‘Reposessions WILL rise sharply if interest rates increase combined with high unemployment and a country still on the brink of another recession. The Government is playing fast and lose in unknown territory.’

    It is not a case of if interest rates rising it is a case of WHEN. You cannot swim against a tide of inflation, rates need to return to a long term sustainable level.

    Dont forget the current government didnt get us into this budget deficit mess. This is not to say they wouldnt have done the same if they were in power over the same period.

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