House repossessions more than double over a year, official figures show

The number of homes seized by bailiffs more than doubled in the last three months of last year compared to the same period in 2021, when mortgage rates skyrocketed and inflation put further pressure on household budgets.

A total of 733 homes were repossessed from October to December 2022, 134 percent more than the year before, according to Justice Department data.

In addition, receivables for assets – the beginning of the process for lenders seeking to repossess a home due to mortgage arrears – rose a quarter to 3,160 and warrants for assets rose 88 percent to 2,112.

All types of mortgage holdings have been increasing since early 2021.

There was a ban on seizures between the start of the pandemic and May 2021, so part of the increase may be due to the backlog that has built up over that time.

However, claims, warrants and repossessions volumes are now 50 percent, 44 percent and 36 percent below their pre-covid levels.

Research from Citizens Advice has found that more than a quarter of mortgage holders would not be able to pay their monthly repayments if they were increased by £100 a month.

Mortgage rates skyrocketed late last year after then-Prime Minister Liz Truss’s disastrous mini-budget sent credit markets into a frenzy. Since then they have started to fall, but they remain much higher than the lows of early 2021.

>> What are the consequences of a rate change for you? Use our mortgage interest calculator

The increases are reflected by landlord property actions — part of the legal process a landlord goes through to evict a tenant.

This number of actions has increased at all stages of the court compared to the same time last year.

Landlord holdings increased 98 percent from October to December compared to the year before, with a possession order rising 103 percent.

Overall, the number of privately rented households in England evicted by bailiffs as a result of Section 21 proceedings has increased by 143 percent in a year.

A Section 21 no-fault eviction allows landlords to evict a tenant without having to give a reason, with two months’ notice.

>> What to do if you cannot pay your mortgage

While repossession rates are rising, they are still below pre-pandemic levels

Polly Neate, CEO of housing organization Shelter, said: “Any eviction notice that lands on someone’s doorstep brings fear and uncertainty. No one wants to be forced out of their home, but these court figures show that this is happening to more and more private tenants in this country.”

At the end of last year, the average rent in Britain rose to more than £1,200 a month for the first time in history. While many benefits will increase in line with inflation from April this year, the upgrade does not relate to rent allowance.

The surcharge has been frozen at 2020 levels, while rents rose to record levels last year.

At the same time, data from the Office for National Statistics shows that there were 4.9 million non-dependent children living at home with their parents in March 2021 – an increase of 14.7 percent since 2011.

The biggest increase was among those aged 25 to 29, as younger adults struggled to pay rent or become a first-time buyer.

Chris Norris, policy director for the National Residential Landlords Association, said: ‘The NRLA wants to preserve leases wherever possible. That is why we are providing support and guidance to landlords to do this and calling on the government to unfreeze rent benefit rates to ensure the most vulnerable can pay their rent.

That said, there are still a number of historic possession cases in the courts catching up with the eviction ban during the pandemic. As the Bank of England noted, changes in tax and regulation are also leading many landlords to exit the market altogether, which unfortunately requires properties to be repossessed in order to sell.”