LSL Property Services : 2015 Repossessions Report

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Under embargo until 00:01 Friday 3rd June 2016 2015

North-South repossessions gap halves in 2015

• North-South divide in home repossessions narrows by 46% as total repossession numbers decline
• 2015 sees Northern repossession rate of 2.1 per 1,000 households, down from 4.1 per 1,000 in 2014
• South sees similar fall in repossession rate to 1.4, shrinking from 2.8 per 1,000 the previous year
• Bolton (3.5 per 1,000 households) & Sunderland (3.1 per 1,000) named worst repossessions towns
• London leads regional improvements, as repossessions fall 54% annually between 2014 and 2015

The gap between home repossessions in the North and South has almost halved in the last year, according to detailed research released this morning by chartered surveyor, e.surv.

In 2015, repossessions in the North fell to a rate of 2.1 per 1,000 households, compared with 1.4 per 1,000 in the South, according to e.surv's analysis of court-ordered repossessions in England and Wales, broken down by postcode. This leaves a gap of 0.7 between the two regions for 2015.

A year earlier, the difference stood at 1.3 homes per 1,000, as the North saw a repossession rate of 4.1 per 1,000 households in 2014, while the South

saw a rate of 2.8 during the same period. This means the divide has nearly halved (-46%) across a year.

Across England & Wales, total home repossessions have declined by a staggering 51% year-on-year in absolute terms to total 19,672 in 2015, down from 39,928 in 2014. As a result, the average rate of repossessions in 2015 across England and Wales now stands at

1.7 repossessions per 1,000 households, down from 3.4 per

Narrowing North-South Repossession Rate Divide 2006-2015

Repossession Rate (per 1,000 households)

16

14

12

10

8

6

4

2

0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

North South

1,000 the previous year.

Richard Sexton, director of e.surv Chartered Surveyors, explains: "Repossession levels are retreating - and the narrowing North-South gap is the strongest sign of this decline. Fuelling these improvements has been the triple combination of rising employment, low inflation, and a consistently low base rate. More people than ever are managing to hang onto their homes and keep up with repayment schedules. Alongside this, many homeowners are re-mortgaging to take advantage of the flurry of new deals on offer from lenders. These factors have significantly helped those struggling across England & Wales to get their finances back on track.

"The lending market is also playing an important role. This is the era of responsible lending, with prospective homebuyers benefiting from the variety of mortgage options on offer, increased regulatory tests, and plenty of advice on how to secure the right deal. The outlook for 2016 seems promising, with increasing numbers of potential buyers finding themselves in a more financially secure position."

Northern towns make up 9 in 10 worst repossession postcodes

Bolton continues to have the highest repossession rate across England and Wales, a position it has held since 2004. Within the town, 3.5 per 1,000 households had their home repossessed throughout 2015. Sunderland closely follows Bolton, with a repossession rate of 3.1 per 1,000, accompanied by Oldham (3.0 per 1,000), Liverpool (3.0 per 1,000) and in fifth position Bradford, with a rate of 2.7 per 1,000 households.

Top Ten Repossession Postcodes

Postcode Area	Repossessions/1,000 households in 2015	Total number of repossessions in 2015	Unemployment Rate (%)
Bolton	3.5	274	6.5
Sunderland	3.1	150	8.5
Oldham	3.0	268	6.9
Liverpool	3.0	508	7.5
Bradford	2.7	314	8.4
Manchester	2.7	594	7.8
Ilford	2.7	159	9.8
Blackpool	2.6	181	6.4
Wigan	2.6	165	5.0
Blackburn	2.6	270	7.4

In the North, 73% of towns had a repossessions rate higher than the England and Wales average. Towns managing to record a lower rate than average included Carlisle (1.2), Derby (1.4) and Leicester (1.5).

Richard Sexton, director of e.surv Chartered Surveyors, explains: "The North is battling to change its reputation as a repossession hotspot. Repossessions overall may be dropping, but the reclaiming of homes remains an acutely Northern problem. Across the region, almost three-quarters of towns are seeing substantially higher than average repossession rates. Homeowners in Bolton are still, more often than most, struggling to make mortgage repayments and even in Manchester and Liverpool - two of the North's most prominent cities - repossessions are prevalent. The North has faced heightened challenges to the South in recent years - the loss of public sector jobs, manufacturing industry decline and a tough recession - all of which hit homeowners and potential homebuyers. However, economic conditions

in the North are now receiving more attention, with the Northern Powerhouse initiative and the future promise of devolution drawing more towns into the national spotlight."

Repossessions by region

The North East has seen the highest rate of court-ordered repossessions in 2015, with 2.4 repossessions per 1,000 households - despite a 47% improvement over the last year. All towns within the region also had higher repossession rates than the England and Wales average (1.7). Meanwhile, London saw the biggest improvement, the repossession rate in the capital reduced by 54% to 1.6 per 1,000 households in 2015, from 3.5 in 2014.

Yorkshire and the Humber similarly saw a large improvement, with repossessions standing at 1.9 per 1,000 in 2015, down from 4.1 the previous year - also a 54% reduction. Despite the North West and North East struggling to see real progress, Yorkshire and the Humber appears to be defying the North-South trend.

Region	Repossessions/1,000 households in 2015	Repossessions/1,000 households in 2014	% change
London	1.6	3.5	-54%
Yorkshire and the Humber	1.9	4.1	-54%
East of England	1.3	2.8	-54%
South West	1.1	2.3	-52%
South East	1.3	2.7	-52%
England and Wales Average	1.7	3.5	-51%
East Midlands	1.7	3.5	-51%
West Midlands	1.9	3.9	-51%
Wales	2.2	4.4	-50%
North West	2.4	4.6	-48%
North East	2.4	4.5	-47%

London leads the rest of England and Wales

London has made significant progress in reducing repossession rates across England and Wales in 2015. The capital now has a repossession rate of 1.6 per 1,000 households, below the 1.7 England and Wales average.

All boroughs within Greater London saw improvements in repossession rates. West-Central London proved the best Greater London postcode area for repossessions, with a rate of just 0.5 per 1,000 households, improving by 41%. East- Central London also boasts a low repossession rate of 0.7, with the two areas forming the most stable householder area of London.

By contrast, Ilford, despite seeing repossession levels improve by 54%, has the highest repossession rate across London, of 2.6 per 1,000 households.

London Postcodes by Rates of Repossession/1,000 Households

Postcode Area	Repossessions/1,000 households in 2015	Repossessions/1,000 households in 2014	% change
Ilford	2.6	5.8	-54%
Romford	2.5	5.3	-53%
South East London	2.3	5.1	-54%
Croydon	2.3	5.0	-54%
Enfield	2.0	3.9	-48%
Southall	1.9	4.5	-59%
East London	1.8	4.5	-59%
England and Wales Average	1.7	3.5	-51%
Harrow	1.7	3.6	-52%
London Average	1.6	3.4	-53%
North West London	1.5	2.5	-39%
Bromley	1.4	3.1	-54%