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North East sees 14% reduction in home repossessions

The North-South divide in home repossessions has closed by a sixth over the last year, according to detailed research released this morning by e.surv chartered surveyors.

There were 2.5 repossessions per 1,000 households in the North in the first half of 2014 (H1 2014), compared to 1.7 repossessions per 1,000 households in the South, according to e.surv’s analysis of court-ordered repossessions in England & Wales, broken down by post code.

This compares to 2.9 repossessions per 1,000 households in the North and 2.0 in the South in H1 2013, meaning the gap has reduced by 16% year-on-year.

In the North East specifically repossessions per 1,00 dropped from 2.98 to 2.57 with only one North East area making up a list of the top ten repossession postcodes; Sunderland.

Richard Sexton, director of e.surv chartered surveyors, explains: “The repossession rift between North and South is beginning to knit itself back together, helped by a jobs boom across the country.

“People all across England and Wales have a firmer grasp of their finances compared to a year ago and the Bank of England continues to hold interest rates low, which has been a real boon to those who are already on the housing ladder – allowing them the chance to pay down debts whilst accessing cheaper mortgage repayments.

“At the same time, wage growth has outpaced inflation for the first time in five years, meaning the cost of living squeeze has started to ease.

“This really boils down to people having more money in their pockets than a year ago.

“Savers may have suffered while the base rate has stayed low, but for those on the edge of the repossessions cliff, it has allowed them the respite needed to claw back their finances and move back into financial security.

“Moving forwards, the Mortgage Market Review will ensure that future borrowers are able to keep up with repayments, despite fluctuations in interest rates. It’s heartening to see repossession rates falling in those areas which have previously been most deeply affected.”

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