Member Article

Bradford home repossessions third highest in the UK, but North-South divide begins to close

Bradford has the third highest level of home repossessions with 7.4 per 1,000 households in 2013, a total of 835.

Harrogate however saw a fall of 23% year-on-year which is more than double the average, and there were mixed results across the region.

Doncaster is the 6th postcode on the list of areas with the most repossessions, but Hull appears 5th on the list of most improved, where repossessions are down 21%.

But although the rate of repossessions remains far higher in the North, some of the best improving areas are to be found in the North West and in Yorkshire & Humber, suggesting the North South divide may be beginning to narrow.

Total repossession court-orders fell 10% from 59,588 in 2012 to 53,325 in 2013. On average, there were 4.7 repossessions per 1000 households in 2013, down from 5.2 in 2012. Repossessions fell in every region of England and Wales.

Richard Sexton, director of e.surv chartered surveyors, explains: “The economic recovery has truly taken hold. Rock-bottom interest rates have enabled home-owners to pay down debts, and mortgages have become much cheaper, which has eased the pressure on household finances.

“Repossessions have fallen rapidly as a result. The labour market is picking up pace and real wages are expected to start growing in the next few months. That will further free up finances.

“There is one looming challenge which could throw the repossessions recovery off course. At some point soon the Bank of England may choose to raise the base rate.

“A higher base rate will translate into higher repayments for many, which could tip a whole host of borrowers into the red. The base rate rise may cause repossessions to temporarily bounce back.”

This was posted in Bdaily's Members' News section by Clare Burnett .