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Mortgage repossession claims rose in first quarter of 2024

Mortgage repossession claims rose in first quarter of 2024
Christina Hoghton
Written By:
Christina Hoghton
Posted:
17/05/2024
Updated:
17/05/2024

Mortgage repossession claims have reached a five-year high, as families risk losing their homes, according to the latest figures.

According to data from the Ministry of Justice, mortgage possession claims increased from 4,035 in 2023 to 5,182 in Q1 of 2024, a 28% rise.

Mortgage possession claims occur when banks or lenders take homeowners to court before repossessing their home.

Possession orders rose from 2,532 to 3,019 (19%), warrants were up from 2,636 to 2,881 (9%) and repossessions by county court bailiffs increased from 729 to 759 (4%).

The figures show that mortgage possession actions have continued their gradual upward trend, with mortgage claims at their highest since 2019.

According to the Liberal Democrats, the rise is down to “Conservative chaos”. It said that “claims have reached their highest level since 2019 as soaring mortgage rates since the mini Budget hit homeowners”.

Sarah Olney MP, Liberal Democrats’ Treasury spokesperson, said: “These deeply worrying figures show a steep rise in families at risk of losing their homes due to soaring mortgage rates.

“This Conservative government crashed the economy with their disastrous mini Budget and sent mortgage rates spiralling. But now, Rishi Sunak and Jeremy Hunt have failed to lift a finger to help those impacted by this Conservative chaos.

“It is unforgivable and shows just how out of touch the Conservative Party is with people struggling to get by.”

Landlord repossessions also rise

Landlord claims have also continued to increase this quarter and are now almost at their pre-Covid 2019 baseline.

All landlord possession actions have risen compared to the same period in 2023 but at a slower pace than mortgage possession actions. Landlord claims, orders, warrants and repossessions are 6%, 3%, 9% and 6% above the levels recorded in the same period in 2023.

Related: Arrears and repossessions rose in first three months of 2024