View more on these topics

Number of homes lost to financial pressures on the decline

The number of homes which owners were forced to give up due to financial pressures fell by 54 per cent between 2010 and 2012 compared with the period running from 2005 to 2009.

An analysis of the latest ONS English Housing Survey by Castle Trust found fewer than 12,000 homes a year were given up as a result of financial pressure between 2010 and 2012.

Comparatively, between 2005 and 2009, there were 26,000 homes a year surrendered.

Castle Trust chief executive Sean Oldfield says: “The number of homes being given up has fallen but the risk to homeowners of rising mortgage rates is still a major issue which shared equity can play a major role in reducing, including the risk of going into arrears, by controlling monthly mortgage commitments.”

The analysis found 55 per cent of those affected between 2010 and 2012 sold their homes to avoid either mortgage arrears or court actions instigated by the lender. The remaining 45 per cent were either taken over by the lender, or the lender left voluntarily or by court order.

Recent figures from the Council of Mortgage Lenders found repossessions were at their lowest level in five years in the fourth quarter of 2012. The number of properties taken into possession by first-charge residential lenders fell from 8,200 in the third quarter of 2012 to 7,700 in the fourth, marking the lowest quarterly figure since the fourth quarter of 2007 when it was 6,900.

Recommended

Thomson

Metro Bank founder: FSA must further relax rules for new bank entrants

Metro Bank founder and former chairman Anthony Thomson has called for the FSA to go further in its plans to remove barriers to new entrants in the banking sector. Speaking at a Westminster Business policy forum on retail banking today, Thomson said the FSA must do more to reform its capital rules for new banks. […]

Adams Richard MS blog 150

New lenders add to the positive vibes

Mortgage lending activity may be creeping up across the board as bank and borrower confidence returns to the market but the impetus that new lending entrants can add to this momentum should not be underestimated. Fresh faces on the lending scene not only give brokers – and subsequently their clients – more product choice, but […]

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.

Newsletter

News and expert analysis straight to your inbox

Sign up