Significantly lower repossessions than previously expected

News - Banking

Friday, 13 November 2009 13:50

Commenting on the Ministry of Justice Possession figures, Simon Rubinsohn, RICS chief economist, said: “Data released by the Ministry of Justice show the number of mortgage claims issued dropped again in the third quarter of the year. This has also been reflected in a further reduction in the number of claims leading to possession orders. In part this more favourable trend is a reflection of the protocol put in place last autumn to ensure parties act fairly in matters relating to arrears, but it is also a result of the low cost of borrowing which is easing the pressure on household finances and is in marked contrast to the experience of the early 1990s. As a result of these figures, it now looks likely that the number of properties taken into possession over the whole of 2009 will be in the region of 40,000, which is significantly lower than the expectations earlier this year. Such an outcome would be similar to the number of repossessions in 2008 and way down on the high of more than 75,000 in 1991.”