Although the CML highlighted that the figures are still very low by historical standards, the number of properties taken into possession rose by over 1,500 from 3,070 in the second half of last year, the lowest figure on record, to 4,640 in the first half of this year, similar to the half-yearly levels of 2002 and 2003.
The number in the first half of last year was 3,160. Repossession occurred in 0.04 per cent of all mortgages, compared to 0.03 per cent last year.
The number of mortgages in arrears of three to six months was 57,220 – up from 53,960 in the second half of last year and 49,720 in the first half of 2004. Arrears of six to 12 months accounted for 30,980 cases, compared with 26,920 in the second half of last year and 26,980 in the first half of 2004.
The CML said it expects repossession rates to peak at around 12,000 a year during 2007 and subsequently stabilise.It said the reasons for the rising trend are not clear-cut but suggested a mix of factors including interest rates and personal debt.
Peter Williams, director-general of the CML, commented: “Arrears and possessions now look set to rise a little but only to the sort of levels experienced in the past few years.
A re-run of the early 1990s is certainly not on the cards. We are working with the government and the industry to make repossession as unlikely as possible.”
