"Repossessions overall may be dropping, but the reclaiming of homes remains an acutely Northern problem."
Across England & Wales, total home repossessions have declined by 51% year-on-year. The North now has a repossession rate of 2.1 per 1,000 households, down from 4.1 per 1,000 in 2014. The South saw a similar fall in its repossession rate to 1.4, shrinking from 2.8 the previous year.
This leaves a gap of 0.7 between the two regions down from 1.3 a year earlier, meaning the divide has dropped by 46%.
Bolton continues to have the highest repossession rate across England and Wales at 3.5 - a position it has held since 2004.
In the North, 73% of towns had a repossessions rate higher than the England and Wales average. The North East has seen the highest rate of court-ordered repossessions in 2015, with 2.4 repossessions per 1,000 households – despite a 47% improvement over the last year.
London saw the biggest improvement, with the repossession rate in the capital reduced by 54% to 1.6 per 1,000 households in 2015, from 3.5 in 2014.
Richard Sexton, director of e.surv, said: “Repossession levels are retreating – and the narrowing North-South gap is the strongest sign of this decline. Fuelling these improvements has been the triple combination of rising employment, low inflation, and a consistently low base rate. Alongside this, many homeowners are re-mortgaging to take advantage of the flurry of new deals on offer from lenders. The lending market is also playing an important role. This is the era of responsible lending, with prospective homebuyers benefiting from the variety of mortgage options on offer, increased regulatory tests, and plenty of advice on how to secure the right deal.
“The North is battling to change its reputation as a repossession hotspot. Repossessions overall may be dropping, but the reclaiming of homes remains an acutely Northern problem. Across the region, almost three-quarters of towns are seeing substantially higher than average repossession rates.
“London is turning over a new leaf when it comes to repossessions. The capital may boast the country’s highest earners but still people struggle to keep up with payments. Progress has been made and London’s average repossession rate has more than halved. But there is still cause for concern, some London boroughs are seeing higher rates than the England and Wales average and there seems to be a fundamental mismatch across the capital."
