The number of repossession has fallen, averaging 1,523 each month from July to October 2012, compared to the same period a year earlier when an average of 1,864 homes a month were repossessed.
These latest figures from the Land Registry show that repossession volumes have been relatively consistent over the past 26 months.
David Brown, commercial director of LSL Property Services, commented: “House prices in 2012 saw a continued – if gentle– recovery that will be welcomed by homeowners and investors alike. However, even more encouraging is the annual fall in the number of repossessions. The labour market has been unexpectedly buoyant in the last year, and falling unemployment has helped prevent the number of defaulting borrowers climb.
“However, nearly four years with a record low Bank Rate has been crucial. Many borrowers who have been financially hard pressed since the recession have been given more breathing room by lower interest payments.
“Nevertheless, after so long with rock-bottom rates, borrowers and new buyers must remember that rates will eventually rise – and not be taken by surprise when they do so, or we will see mortgage arrears cases and repossessions climb rapidly when the Monetary Policy Committee does take a different course of action.”
The Monetary Policy Committee sets Bank of England base rate each month. The rate has been at 0.5 per cent for almost four years and experts predict it is set to stay that way for the foreseeable future.
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