"Unfortunately, if you are facing an eviction, the outcome is often inevitable. Our advice would be to get ahead of the game whilst proceeds are ongoing and get back in the market. Get yourself rental-ready in terms of documentation, and references and, if possible, have a deposit saved for a new property"
- Adam Piggot - OpenBrix
Tlyfe analysed Gov data on landlord possessions across England and Wales, whilst additional analysis from lettings and estate agent, Benham and Reeves, has also revealed the number of mortgaged homeowners who are set to lose their home.
Tlyfe found that some 2,425 tenants are expected to lose their homes in the three months leading up to Christmas (October to December). At the same time, the figures from Benham and Reeves have revealed that an estimated 876 mortgaged homeowners are set to see their homes repossessed before 2024 is through.
Rental market
Rental market repossessions have been largely increasing throughout 2024, with the number seen up by 6.9% in Q1 of this year versus Q4 2023.
Whilst Q2 2024 saw a quarterly decline of 1.6% versus Q1, this figure increased once again in Q3, this time by 4.4%. The forecast 2,425 rental market repossessions set to take place in Q4 will mark yet another increase, up 1.3% versus Q3.
This figure will also mark an 11.2% increase versus Q4 2023 and, with a forecast of 9,444 renters set to face eviction in 2024, this figure also marks a 10.8% increase versus the total seen in 2023.
Mortgage market
As with the rental market, mortgaged-related property repossessions have also been climbing this year. In Q1, some 769 mortgaged homes were repossessed, marking a 29% increase on Q4, 2023.
This figure then climbed by a further 13% in Q2 of this year and, whilst cooled by 1% in Q3, it’s forecast to climb again in Q4, this time by 1.7%.
As a result, it’s expected that the estimated number of mortgaged properties to be repossessed during Q4 of this will sit some 47% higher when compared to Q4 2023. This will mean 3,375 mortgaged homes are forecast to be repossessed in 2024 as a whole, again marking a significant 29% jump versus 2023.
CEO of OpenBrix, Adam Pigott, commented: “No tenant wants to lose their home, particularly in the run-up to Christmas, but rental market repossessions are an unfortunate reality that thousands of tenants face each and every year.
"It’s important to note that such evictions aren’t always the fault of the tenant and this can make it a particularly bitter pill to swallow.
"Not only do they face the instability that comes from losing their home, but they’re also thrust back into the rental market fray and forced to undergo the often laborious task of finding another rental home.
"Unfortunately, if you are facing an eviction, the outcome is often inevitable. Our advice would be to get ahead of the game whilst proceeds are ongoing and get back in the market. Get yourself rental-ready in terms of documentation, and references and, if possible, have a deposit saved for a new property.
"In doing so, you can help streamline the process of finding a new rental property and minimise any time between leaving your current property and entering a new one.”
Director of Benham and Reeves, Marc von Grundherr, commented: “2024 has largely been a story of positivity where the property market is concerned and we’ve seen more buyers returning and house prices climbing steadily over the course of the year.
"We’ve also seen two long-awaited reductions to the base rate, but despite this, mortgage rates simply haven’t reduced by as much as expected - in fact, they’ve largely trended upwards.
"This has meant that homebuyers have continued to contend with affordability constraints and those already on the ladder have also been contending with the significant increase in borrowing costs seen in recent years.
"Those who have come to the end of a five-year fixed-term, for example, will have seen a huge jump in the mortgage payment required, having originally taken a mortgage out when the base rate was sub one percent, whilst now renegotiating terms when it sits at almost five percent.
"This huge increase in the monthly cost of their mortgage means that many simply can’t afford to keep up and this is the driving factor behind a seasonal spike in repossessions.”
