Grim figures reveal a spike in repossessions across England and Wales as festive season looms.
Thousands of tenants and homeowners across England and Wales face the devastating prospect of eviction in the run-up to Christmas, new analysis has revealed.
Research by tenant app Tlyfe shows that 2,425 tenants are expected to lose their homes between October and December this year.
Meanwhile, separate data from estate agent Benham and Reeves suggests that 876 mortgaged homeowners could also face repossession before the year ends.
HARDEST HIT
The rental market has been grappling with a worrying surge in evictions throughout 2024.
Repossessions rose by 6.9% in the first quarter of the year compared to the end of 2023, and although there was a slight dip in Q2, numbers climbed again by 4.4% in Q3.
The forecasted Q4 figures mark a 1.3% increase on the previous quarter and a staggering 11.2% rise compared to the same period last year. Over the course of 2024, nearly 9,444 renters are expected to be evicted – a 10.8% jump on 2023.
UNFORTUNATE REALITY
Adam Pigott, Chief Executive of OpenBrix, says: “No tenant wants to lose their home, particularly at Christmas, but for thousands, this is an unfortunate reality every year.
“These evictions aren’t always the tenant’s fault, which makes it even harder to swallow.
“Our advice for those facing eviction is to act quickly: get your documents and references in order, and save for a deposit if possible. This can help ease the transition to a new rental property.”
UNDER PRESSURE
The crisis isn’t confined to the rental market. Mortgage repossessions have also been on the rise, with a 29% increase in Q1 of 2024 compared to the previous quarter.
By the end of the year, an estimated 3,375 mortgaged homes will have been repossessed – a 29% jump on 2023.
HUGE INCREASES
Marc von Grundherr, Director of Benham and Reeves, says: “Despite two base rate cuts this year, mortgage rates haven’t fallen as much as hoped – in fact, they’ve largely gone up.
“Many homeowners, especially those coming off five-year fixed-rate deals, are facing huge increases in monthly payments.
“People who locked in when rates were below 1% are now renegotiating at nearly 5%, making their mortgages unaffordable. This is driving the seasonal spike in repossessions.”
