Shocking, but probably not in the way that you think. If you read the recent UK housing news, you might remember that repossession orders have climbed 17% in the first quarter over the same period last yeat. Shocking....but the really shocking thing is how FEW people are affected, not how many.
Digging through the story, the following figures emerge. Mortgage claims are the triggering of the process that may ultimately lead to reposession, although often there are alternative arrangements made. And it is clear that mortgage claims are rising.
| Q1 2008 | % of mortgages | Q1 2007 | % of mortgages | |
| Mortgage claims | 38,688 | 0.33% | 33,344 | 0.28% |
| Mortgage reposessions | 27,530 | 0.23% | 23,438 | 0.20% |
| Number of mortgages | 11,800,000 | 11,800,000 |
But would you be shocked to learn that only 0.23% of mortgage owners got reposessed? One quarter of one percent of mortgage holders had to hand in their keys. Admitted that this is quite a lot families affected - approximately 27, 530, but given that nearly 12 MILLION mortgage holders are managing to pay their bills and keep their properties, it isn't a lot.
It also might not surprise you to know that where you live in the UK has a pretty big impact on the repossessions. The Midlands, North West and Wales are reposession hotspots, so what is it about those areas. It isn't unemployment, at least officially. They are around the national average. GDP per head in Midlands and North West are lower than average but not as low as the North East which has very little growth in repossessions.
Regional breakdown of possession orders and claims
| Region | Possession claims: Annual change since 2007 Q1 | Possession orders: Annual change since 2007 Q1 |
| London | -1% | -6% |
| Midlands | 22% | 22% |
| North East | 20% | 1% |
| North West | 24% | 23% |
| South East | 13% | 9% |
| South West | 17% | 11% |
| Wales | 21% | 26% |
| Source: Ministry of Justice. Figures are not seasonally adjusted | ||
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