House repossessions in the UK hit an all time low
The number of houses repossessed in the UK has hit a 10 year low
New research highlights that the number of repossessions has now reached their lowest levels since 2006, a fall of 26% compared with figures from 2013.
The report from the Council of Mortgage Lenders (CML) stated that the number of repossessions in 2014 totaled 21,000, with owner occupier homes accounting for 16,100 and just 4,900 buy to let repossessions.
The number of properties with mortgage arrears in England and Wales also fell by 1.05% last year to 116,800, down from 124,400 in 2013, indicating a positive overall change and a general uplift in the property market.
Two common issues associated with the repossession of homes are unforeseen financial circumstances, such as losing a job, and unattainable interest rates. In 2009, repossession numbers reached 46,000 per year, more than double current figures. It is likely these high numbers can be attributed to the high unemployment figures and low income levels which individuals were exposed to immediately after the market crash, and were unable to keep up repayments on their mortgages. This undoubtedly left many people with no choice but to relinquish their assets.
What does Sequre say?
Graham Davidson, Managing Director of Sequre Property Investment, comments on the falling repossession figures:
“Following on from economic difficulties seen in the UK in previous years, these falling figures will no doubt be down to a recovery in the market. Prices have begun to rise and interest rates are lower than ever so it’s no great surprise that repossessions and mortgage arrears are so low.”
“With fewer repossessions overall, those looking to get cheaper deals on house purchases and in terms of buy to let investments may need to start looking elsewhere. We’re seeing that demand is growing higher but supply is running low.”
“Buyers looking for a better deal can seek advice from companies like Sequre. As well as sourcing repossessed properties off market, we negotiate in bulk meaning all of our investments are already heavily discounted, so those looking to make a profit receive instant equity from day one. Our investors can choose to make a buy to let purchase purely for rental income or can look to gain capital growth in order to sell at a profit at a later date.”
“The relationships we have with banks, lenders and receivers give us a real advantage in the buy to let market and are the reason many of our clients choose to invest with us. They know that they are always getting the best deal available on the market which are very often completely exclusive to Sequre.”