Repossessions set to rise in second half and into 2012

HML predicts that repossessions will fall during the first half of 2011 to 15,557 before rising during the second half to 17,700.

HML predicts 33,257 houses, 0.3% of all mortgaged properties, will be repossessed during 2011.

The latest Council of Mortgage Lenders figures show there were 36,300 repossessions by first-charge mortgage lenders in 2010.

Neil Warman, chief commercial and finance officer at HML, says: “Looking at 2012 we see increased affordability pressures for borrowers who are in work, together with the lagged effect of job losses in the public sector and benefit cuts.

“This will lead to a slight increase in repossessions during the year to between 35,000 and 40,000.”