Repossessions up 5 percent year-on-year in Q4 2011
The number of properties taken into possession in Q4 2011 totalled 8,500, 5% higher than the 8,100 homes repossessed in the same period in 2010, according to data from the Council of Mortgage Lenders.
However, the number of repossessions in Q4 2011 marks a 9% fall on the 9,300 properties repossessed in the previous quarter.
The number of properties repossessed in 2011 as a whole was 36,200, or 0.32% of all loans, down from 37,100 repossessions at 0.33% of all loans in 2010.
The figures also show that there continued to be a modest improvement in arrears across all bands in Q4 2011, and in 2011 as a whole compared to the previous year.
At the end of 2011, 159,400 mortgages had arrears equivalent to 2.5% or more of the mortgage balance, down by 7.5% compared to the 172,400 mortgages in arrears at the end of 2010.
Buy-to-let properties accounted for 5,900 of the repossessions in 2011, up from 4,700 in 2010.
The overall repossession rate was 0.32% in 2011 - 0.31% on owner-occupied properties, and 0.42% on buy-to-let. This compares with an overall rate of 0.33% in 2010 - 0.32% on owner-occupied properties, and 0.36% on buy-to-let.
However, in terms of arrears the buy-to-let sector outperformed the owner-occupier sector.
While the 3 months arrears rate stood at 1.98% of all mortgages at the end of 2011, the proportion was higher among owner-occupiers at 2.06% than among buy-to-let mortgage holders, which stood at 1.38% if receiver of rent cases were excluded and 1.79% if included.
The CML says that although arrears and repossessions throughout 2011 were fairly stable, it has no current plans to revise its forecasts for 2012.
It says that worsening unemployment levels and continuing pressures on the cost of living are likely to result in a further deterioration on household finances this year, with repossessions expected to total 45,000, up 24% on 2011’s total.
The CML also expects there to be 180,000 mortgages in arrears of 2.5% or more by the end of the year.
Paul Smee, director-general of the CML, says: “Low interest rates and good arrears management by lenders are helping the vast majority of those borrowers who face difficulties to keep their homes and get back on track.
“This will continue, but in the face of wider economic difficulties and rising unemployment, we are concerned that there will be a higher number of people facing more serious problems in 2012.”
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