Property repossessions up as much as 30% year on year

Research by property purchasing specialist, House Buyer Bureau, has revealed that the number of homes being repossessed across the property market in England and Wales remained largely static since interest rates started to climb, although with an increase of 30% since December 2021, Yorkshire and the Humber has seen the largest uplift of all regions.

House Buyer Bureau analysed government data which shows that some 3,219 homes were repossessed between December 2021 and December 2022, a marginal 0.4% increase when compared to the same time period (Nov 2020 to Nov 2021) and prior to the first Bank of England interest rate hike.

The good news is that the majority of regions have seen a reduction in the number of homes being repossessed since interest rates started to climb, quite a substantial reduction in some cases.

In the East of England just 59 homes have been repossessed since December 2021, a drop of 46% versus the same time period prior. Across the London market property repossessions have fallen by 18%, while the South East (-12%), South West (-3.9%), North East (-1.1%) and North West (-0.7%) have also seen a reduction.

However, while the North West may have seen a drop in the number of homes being repossessed, the region still ranks as the nation’s property repossession hotspot, accounting for 21% of all homes repossessed since interest rates started to climb.

Yorkshire and the Humber ranks second in this respect, accounting for 16% of all property repossessions, with the North East sitting third in the table (15%).

What’s more, Yorkshire and the Humber has also seen the largest annual increase. 501 homes have been repossessed across the region since December 2021, a 30% increase on the previous year.

Wales (+14%), the East Midlands (+8%) and West Midlands (+6%) have also seen an increase.

Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:

“Since interest rates started to climb the number of homes being repossessed across England and Wales has remained largely flat, but while this suggests an overarching air of stability, the topline statistics mask some quite drastic fluctuations at regional level.

Regions such as Yorkshire and the Midlands have performed particularly well during the pandemic but the figures suggest that buyers in these regions have been more prone to over borrowing during the pandemic market boom in order to climb the ladder at a far more inflated cost.

Now that interest rates have started to climb, the increased cost of borrowing is likely to be a contributing factor behind a steep increase in the number of homes being repossessed.”