Home repossessions reach near 30-year low

House repossessions have fallen to their lowest level for nearly 30 years, data showed on Thursday, as homeowners benefitted from low interest rates.

There were a total of 4,580 homeowner possessions in 2018 – the lowest since the 3,480 recorded in 1980 – with 9m outstanding homeowner mortgages at the end of December, according to UK Finance.

That is the lowest level of homeowner possessions since 1980, when there were 3,480.

Jackie Bennett, director of mortgages at UK Finance, said the figures had been “aided by a historically low interest rate environment and lenders showing continued flexibility when working with borrowers in financial difficulty.

“Mortgage arrears also remain at historically low levels, with the majority of borrowers continuing to repay their mortgages in full and on time each month.”

UK Finance, a trade body that represents British banks and financial firms, said there were 77,610 homeowner mortgages in arrears of more than 2.5% of the outstanding balance in the fourth quarter, 5% lower than the same period a year earlier.

In the buy-to-let sector, there were 4,690 mortgages in arrears, 3% fewer than the fourth quarter of 2017. A total of 540 buy-to-let properties were repossessed in the last three months of the year, a 14% year-on-year decline.