Last year saw the rate of home repossessions 44% higher in the North of the country than in the South, according to research from e.surv chartered surveyors.
The analysis of court-ordered repossessions in England and Wales in 2013, broken down by post code, found there were 5.6 repossessions per 1,000 households in the North, 44% higher than the 3.9 repossessions per 1,000 households in the South. This compares to 6.3 repossessions per 1,000 households in the North and 4.4 in the South in 2012.
Eight in 10 Northern towns (78%) were home to more repossessions than average in 2013. The North West, North East and Wales were repossession hubs in 2013, with 6.0, 5.9 and 5.8 repossessions per 1,000 households respectively. The South West – the area with the lowest number of repossessions per year – experienced the biggest improvement, with repossessions falling 15% over the past year.
Richard Sexton, director of e.surv chartered surveyors, said: “The North is still home to the largest wedge of repossessions, despite improvements in household finances across the country. Both the North West and the North East are still paying the price of recession-driven public sector job cuts – which stimulated a glut of local repossessions.
“The whole country is now in recovery, but the North has the furthest to go to catch up, and is comparatively lagging behind.”
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.
Sexton said: “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.”
In total, 86% of towns in the North West had more repossessions than the average in England and Wales in 2013. In fact, five of the worst ten towns for repossessions were in this region. North-West town Oldham had the highest rate of repossessions – with 8.6 repossessions per 1,000 households – almost double the average number in England and Wales (4.7). Other North West towns in the top ten repossession postcodes included Wigan (4th highest with 7.4), Blackpool (5th highest with 7.0), Liverpool (9th highest with 6.9) and Manchester (10th highest with 6.8).