While the total number of homes being reclaimed by mortgage lenders is falling across the UK, the differential between the North and South of the country is now wider than it has been since the credit crisis began in 2007.

According to analysis from e.surv, almost three quarters of towns in the North are experiencing above-average levels of property repossession.

E.Surv chartered surveyors director Richard Sexton said the recovery had been slow to filter through to the North:

“As a region, the North has traditionally depended on public sector jobs, but a squeeze in public sector funding has led to loss of jobs for many, and very slow pay increases for others.

“Pay increases that are consistently below the rate of inflation have further tightened household budgets, and caused many to fall behind on mortgage repayments.”

The North West and Wales tied for the most repossessions at 3.4 per 1,000 households, followed by Yorkshire and the Humber. Scotland saw the least repossessions, at 0.3 per 1,000 households.

Although the South West and South East have below average rates of repossessions, the research found they are experiencing some of the biggest annual increases in repossession rates.

London boroughs also displayed contrasting repossession trends – central London areas saw some of the lowest repossession rates in the country, but suburbs such as Croydon and Ilford experienced higher than average repossessions.