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Repossessions at highest level since 1996 in UK Housing Market

The Council of Mortgage Lenders say there were 46,000 repossessions in 2009. From a positive angle they predicted 48,000. In 2008, 40,000 homes were repossessed. The report continues with the figure on mortgage arrears. 188,300 mortgages ended the year in arrears, below the 195,000 the CML had anticipated, though this is expected to rise to over 200,000 this year.

It seems that overall; it was predicted to be a lot worse than the actual figures released show. So there is a sense of relief in the market.

Repossessions at highest level since 1996 in UK Housing Market

The Council of Mortgage Lenders added that its current forecasts for the current year, of 53,000 repossessions, could be too pessimistic “given that low interest rates and lenders’ arrears management policies and government assistance schemes are working well to support many borrowers through temporary difficulties.”

2010 will still be a challenging year for many borrowers, and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise. In addition economic and political outlook still remain uncertain.

Meanwhile, courts in England and Wales issued 42 per cent fewer mortgage possession orders in the final quarter of 2009 compared with a year earlier, and 21 per cent fewer company winding-up petitions, the Ministry of Justice said today.