Home repossessions fall in first-quarter of 2010
Housing repossessions fell in the first quarter of 2010 to 9,800 compared to 10,600 in the previous quarter and 13,200 during the same period in 2009. The number of homeowners in arrears also fell from 196,400 in the previous course quarter to 186,300 in the first quarter of 2010. So what does this mean for the UK property market?
It was also interesting to see that buy to let landlords are now starting to prosper again with mortgage arrears in this area down from 20,700 to 19,300 over the last two quarters. This compares to a figure approaching 29,000 in the same period for 2009 and perfectly reflects the recovery we have seen so far in the UK property sector.
Even though it is always good to see the number of repossessions fall there is a belief that more mortgage support programs have kicked in to hold down the figure in the short-term. How long these support programs will be able continue is open to debate as we need to see a sustained recovery in the UK economy before the threat of an increase in repossessions can be discounted.
While the general trend appears to be positive the Council of Mortgage Lenders (CML) still believes that UK repossessions will increase from 48,000 in the whole of 2009 to 53,000 in 2010. Even though this figure is likely to be revised downwards in the event of an economic recovery in the UK there is still concern about the fragile state of the UK economy.
Share this..
Related stories
Will the mortgage lenders pass on any imminent base rate reduction?
As many in UK appear to be readying themselves for a 1% reduction in UK base rates later this week, there is concern that the mortgage lenders of the UK do not appear prepared to pass on the rate cuts to customers in the short term. Indeed, the cut which occurred just a couple weeks ago has yet to hit many mortgage holders in the UK with some banks deferring a reduction until mid-December.
...
Mortgage activity slows
Mortgage lending in the UK is beginning to show signs of slowdown, the latest figures have shown.The apparent "stabilising" of demand comes on the back of interest rate rises in August and November in 2006; and January and May this year.According to the Council of Mortgage Lenders (CML), gross mortgage lending in April was £28.8 billion, down nine per cent from March's £31.7 billion total.But th...
Read MoreBuy to let self certified funding under threat
Despite the fact that the buy to let market was, at least in the 80s and 90s, a hive of activity in the UK, with many landlords obtaining mortgage funding using so-called "self certified" income statements, this particular avenue is under threat for the future. Buy to let mortgages may now be pulled under the watch of the Financial Services Authority in a move to bring everything under one roof an...
Read MoreJohn Healey and his controversial comment on repossession
John Healey, the UK government's Housing Minister, has today courted controversy with a suggestion that repossession is the "best thing" for some struggling homeowners. This comes on the day when repossessions in the UK were reported to have hit a 14 year high during 2009 and are set to get worse in 2010. While ultimately, for those in deep financial trouble there may well be few options other tha...
Read MoreFSA set to tighten UK mortgage lending rules
The FSA has over the last few days stepped into the limelight with regards to the future regulation of the UK mortgage industry. It seems inevitable that we will see a tightening of the regulatory framework which covers the mortgage industry and far stricter rules on the types and size of mortgages and loans which can be provided. So what exactly is going on?
While the wording of va...