Over 1,000 homes repossessed in Quarter 1

Latest UK Finance data has reported a 50% increase in home repossessions in Quarter 1 (Q1) 2023, with over 1,000 homes taken into repossession due to homeowners struggling to keep up with mortgage repayments.

In addition to the 750 mortgaged properties repossessed, 50 per cent greater than in the previous quarter. 410 buy-to-let mortgaged properties were taken into possession in the first quarter of 2023, 28 per cent greater than in the previous quarter.

The Bank of England’s 12 consecutive interest rate hikes in the past 18 months have led to mortgage rates increasing, but economists suggest that the majority of the extra cost to homeowners is still to be passed on. 

There were 76,630 homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance in the first quarter of 2023, 2 per cent greater than in the previous quarter

.Within the total, there were 27,700 homeowner mortgages in the lightest arrears band (representing between 2.5 and 5 per cent of the outstanding balance). This was 5.0% greater than the previous quarter.

There were 7,030 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the first quarter of 2023, 16 per cent greater than in the previous quarter.

Within the total, there were 3,420 buy-to-let mortgages in the lightest arrears band (representing between 2.5 and 5 per cent of the outstanding balance). This was 33.1% greater than the previous quarter.