Credit Repair Bureau

The number of possession claims fell back by seven per cent to October from 26,213 down to 24,337, according to Ministry of Justice statistics.

The decrease in claims comes against a backdrop of low interest rates and increased support for struggling borrowers from both mortgage lenders and the government.

The figure published today is a 37 per cent drop since the equivalent quarter of 2008, after which the introduction of the Mortgage Pre-Action Protocol made clear that applying for repossession should be a last resort and encouraged lenders to look again at whether arrangements could be made with those in arrears to help them get back on track.

Justice Secretary Jack Straw and Courts Minister Bridget Prentice welcomed the impact of government measures.

Prentice said: “Measures like the Mortage Pre-Action Protocol are giving homeowners vital breathing space to focus on solving their financial problems without the threat of eviction in the meantime.”
She added that the government plans to consult on measures to bar lenders from selling a property against homeowners wishes until the court process is complete.

Stephen Sklaroff, director general of the Finance & Leasing Association, said: “Any reduction in repossessions is good news, but these are still very tough times with many homeowners struggling to keep up payments on loans, bills and other debts. The important thing is for lenders to continue to use the full range of options to help people in financial difficulty, with repossession as the last resort.”

Simon Rubinsohn RICS chief economists said: “As a result of today's 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."

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