Statistics on mortgage and landlord possession actions in the county courts for the third quarter of 2009, released by the Ministry of Justice, found that 24,337 mortgage possession claims were issued on a seasonally adjusted basis, 37% lower than in the third quarter of 2008 and 7% lower than in the second quarter of 2009.
Of these 17,134 mortgage possession claims led to orders being made on a seasonally adjusted basis, 35% lower than in the third quarter of 2008 and 9% lower than in the second quarter of 2009. 44% of mortgage possession claims leading to orders being made were suspended compared with 47% in the third quarter of 2008 and 46% in the second quarter of 2009.
Commenting on the Ministry of Justice possession figures, Simon Rubinsohn RICS chief economist, said: "In part this more favourable trend is a reflection of the protocol put in place last autumn to ensure parties act fairly in matters relating to arrears but it is also a result of the low cost of borrowing which is easing the pressure on household finances and is in marked contrast to the experience of the early 1990's.
“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."
The CML also downgraded its repossession forecast, from 75,000 to 48,000 for the year. In the third quarter of this year, new CML figures show that the number and proportion of mortgages in arrears both fell, despite the bleak economic backdrop. At the end of September 194,600 mortgages, 1.77% of the total, were in arrears of 2.5% or more of the outstanding mortgage balance. This compares with 204,200 cases (1.86% of all mortgages) at the end of June.
