The number of homes being repossessed across England and Wales remained largely static overall during 2022, but with some ‘drastic fluctuations’ at regional level, says House Buyer Bureau.
Research by the property purchasing specialist found some 3,219 homes were repossessed between December 2021 and December 2022, which represents a slight increase of 0.4% compared to the previous 12-month period and before interest rates started to rise.
And while repossessions were down across many areas, there were a few regions with some significant increases. For example, there was a 30% increase in the number of properties repossessed in Yorkshire and the Humber, with a total of 501 homes.
Wales (+14%), the East Midlands (+8%) and the West Midlands (+6%) also saw rises. On the flip side, just 59 homes were repossessed during that 12-month period in the East of England – a fall of 46% on the previous 12 months.
Repossessions also fell across London (-18%), the South East (-12%), the South West (-3.9%) and the North West (-0.7%). Despite the slight reduction in the North West though, this region accounts for 21% of all homes repossessed since interest rates started to rise, making it a hotspot in this respect.
House Buyer Bureau managing director Chris Hodgkinson comments: “Since interest rates started to climb, the number of homes being repossessed across England and Wales has remained largely flat, but while this suggests an overarching air of stability, the topline statistics mask some quite drastic fluctuations at regional level.
“Regions such as Yorkshire and the Midlands have performed particularly well during the pandemic but the figures suggest that buyers in these regions have been more prone to over borrowing during the pandemic market boom in order to climb the ladder at a far more inflated cost.
“Now that interest rates have started to climb, the increased cost of borrowing is likely to be a contributing factor behind a steep increase in the number of homes being repossessed.”
