Taylor Scott International News
The gap between home repossessions in the North and South of England and Wales has closed by 80% since the recession, according to new detailed research. On average, there were 1.1 repossessions per 1,000 households in the North in the first half of 2015 compared to 0.7 in the South, according to the analysis by e.surv chartered surveyors of court ordered repossessions, a difference of 0.4. By comparison, in 2008 repossession rates stood at 8.2 per 1,000 households in the North and 5.9 in the South, a difference of 2.3. This means the divide has closed by 80% across this seven year period. On a yearly basis since the first half of 2014 the North-South divide has narrowed 43%. In the first six months of 2014 there were 2.4 repossessions per 1,000 households in the North, in contrast to 1.7 in the South, with a difference of 0.7, meaning the gap closed at a faster pace over the last year than in previous years. In absolute terms, across England and Wales total home repossessions have declined by 45% year on year to reach 10,401 in the first half of 2015 from 23,279 as of the first half of 2014. As a result, the average rate of repossessions stands at 0.9 per 1,000 households, compared to a rate of 2.1 repossessions per 1,000 households in the first half of 2014. However, the report says that despite these improvements, the North is failing to match this average rate across England and Wales, with almost eight out of 10 towns in the regions seeing a higher than average repossession rate. ‘Over the last year, the North/South gap has been narrowing at an accelerated pace. Fewer people are battling unemployment and against this optimistic backdrop, finances are being bolstered across England and Wales by delayed interest rate increases,’ said Richard Sexton, director of e.surv chartered surveyors. ‘Rising wages and negative inflation are making living costs more affordable, giving people room to save. But these economic changes are also having a real impact on those feeling the strain and potentially facing repossession,’ he explained. ‘A healthier lending market is enabling people to search for cheaper mortgage options and regulatory changes, such as the 2014 Mortgage Market Review, are making a real difference in protecting borrowers from committing to potentially unaffordable mortgages in the first place,’ he added. The details of the report reveal that since the first half of 2014, Bolton has featured in the top 10 worst repossession postcodes. Despite the town seeing a reduction in its repossession rate year on year to two per 1,000 households in the first half of 2015 from 2.8 in the first half of 2014, it still has emerged as the town with the highest incidence. Within the bottom five, Oldham at 1.6 per 1,000, Liverpool also at 1.6 per 1,000 and Manchester at 1.5 per 1,000, re all in the North West and are all battling high… Taylor Scott International
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