Housing repossessions reach 14 year high

The Council of Mortgage Lenders (CML) has today confirmed that 46,000 homes were repossessed in the UK in 2009 which is the highest for over 14 years. While the number is an increase of 6,000 on the 2008 figure it is less than the CML forecast of 48,000 and it would appear the situation is improving. So what can we expect for 2010?

To give you some background on the repossession figures, the CML had initially forecast 75,000 homes would be repossessed in 2009 although this figure was later revised down to 48,000. However, there are still over 188,000 mortgages in arrears of over 2.5% of their outstanding mortgage balance which does give concern for the future. Rather surprisingly, the figure of 188,000 is actually 7,000 less than the CML had forecast and the figures for 2010 look likely to be revised in the short to medium term.

At this moment in time the CML is forecasting 53,000 repossessions in 2010 with over 200,000 mortgages set to end the year in arrears of over 2.5% of the balance. However the council has today confirmed these figures are "a little pessimistic" which would indicate they are likely to be revised down in the short to medium term. While the worst may be over, there is still some pain ahead for many UK homeowners.