Property repossessions up as much as 30% year-over-year: report

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New data revealed that the number of homes repossessed in the England and Wales property market has remained largely flat since interest rates started rising, albeit up 30% from December 2021, Yorkshire and Humber have experienced the largest increase of all regions.

House Buyer Bureau, a specialist in property purchases, analyzed government data showing that some 3,219 homes were foreclosed between December 2021 and December 2022, a marginal increase of 0.4% compared to the same period (November 2020 to November 2021) and before the first Bank of England Interest Rate Hike.

The positive news is that most regions have seen a reduction in the number of homes that have been foreclosed on since interest rates began to rise, a quite substantial reduction in some cases.

In the east of England, just 59 houses have been repossessed since December 2021, a 46% drop compared to the same period before. Across the London market, property repossessions fell 18%, while the South East (-12%), South West (-3.9%), North East (-1.1%) and North West (-1.1%). 0.7%) also experienced a reduction. .

However, while the Northwest may have seen a drop in the number of foreclosed homes, the region still ranks as the nation’s property recovery hotspot, accounting for 21% of all foreclosed homes since foreclosure rates began. interest began to rise.

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

Additionally, Yorkshire and the Humber have also experienced the largest annual increase. 501 homes have been foreclosed across the region since December 2021, an increase of 30% over the previous year.

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

House Buyer Bureau Managing Director, Chris Hodgkinson, commented:

“Since interest rates started to rise, the number of houses repossessed in England and Wales has remained mostly flat, but while this suggests a general air of stability, the overall statistics mask some rather drastic fluctuations regionally. .

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 likely to borrow heavily during the pandemic market boom to move up the ladder at a much more inflated cost.

Now that interest rates have started to rise, the higher cost of borrowing is likely to be a contributing factor to a sharp increase in the number of homes being foreclosed on.”