More mortgaged homeowners set to lose their home in the run up to Christmas

The research by London lettings and estate agent,
Benham and Reeves, has shown that whilst 2024 has been a far more positive year for the property market, it’s estimated that some 876 mortgaged homeowners will have their property repossessed during the final three months of this year alone, marking a 47% increase year on year.

Benham and Reeves analysed Gov data on mortgage possessions across England and Wales, looking at the number of repossessions by county bailiffs so far this year*.

The figures reveal a worrying trend has been emerging in 2024. In Q1, some 769 mortgaged homes were repossessed, marking a 29% increase on Q4, 2023.

This figure then climbed by a further 13% in Q2 of this year, cooling by just 1% in Q3.

However, it’s estimated that the number of mortgaged homes being repossessed is set to climb again in Q4, this time by 1.7%.

As a result, it’s expected that some 876 mortgaged homeowners will have had their homes repossessed in the run up to Christmas – 47% more when compared to Q4 2023.

As a result, some 3,375 mortgaged homes are forecast to be repossessed in 2024, again marking a significant 29% jump versus 2023.

Director of Benham and Reeves, Marc von Grundherr, commented

“2024 has largely been a story of positivity where the property market is concerned and we’ve seen more buyers returning and house prices climbing steadily over the course of the year.

We’ve also seen two long awaited reductions to the base rate, but despite this, mortgage rates simply haven’t reduced by as much as expected – in fact, they’ve largely trended upwards.

This has meant that homebuyers have continued to contend with affordability constraints and those already on the ladder have also been contending with the significant increase in borrowing costs seen in recent years.

Those who have come to the end of a five year fixed-term, for example, will have seen a huge jump in the mortgage payment required, having originally taken a mortgage out when the base rate was sub one percent, whilst now renegotiating terms when it sits at almost five percent.

This huge increase in the monthly cost of their mortgage means that many simply can’t afford to keep up and this is the driving factor behind a seasonal spike in repossessions.”