The Department for Constitutional Affairs reported last week that there had been a rise of 66% in repossession orders in England and Wales over the past three months.
Whilst at first glance this looks concerning, e.surv says it must be remembered that we are starting from an extremely low point.
Richard Sexton, business development director at e.surv, says: Whilst percentage change is significant, absolute numbers are not.
“Lenders instigate actions for repossessions far sooner in the process than previously as part of their proactive management of arrears.
“However, their preference remains to keep the borrower in the property in all but the most extreme cases.
The significant majority of actions do not proceed to repossession, as evidenced by figures in the first half of the year with only approximately an 8% conversion rate.
e.survs position as the UKs largest distributor of valuations for lenders gives it valuable insight into trends in the mortgage market.
Sexton adds: I can report that actual repossession reports commissioned actually fell by 33% in October, compared to September. This supports the view that more detailed analysis is required in order to understand this area of the market.