Latest forecast released by financial outsourcer HML claims that repossessions in the UK will fall in the first half of 2011 before climbing again in the second half.
The firm claims that there will be 15,557 repossessions till July 1 and another 17,700 in the second half of 2011, after examining 320,000 accounts of mortgage customers.
The total number of repossessions has been forecasted at 33,257 houses or 0.3 percent for the entire year. The absolute percentage of repossessions are expected to remain same as 2010, which saw 36,300 repossessions by first charge mortgage lenders or 0.3 percent of total lending.
Among the different regions, Northern Ireland is expected to top the chart in the UK with 2,350 repossessions or 0.83 percent of all mortgages. The HML report says that this is inline with the 10.2 percent property price fall witnessed in the region.
The South West part of the country will be the least affected with 1,557 repossessions or 0.18 percent of all mortgaged properties.
“Despite the challenging economic environment, the downward trend in repossessions we saw last year is set to continue for the first half of this year. However repossessions will then begin to rise during the second half as a number of macroeconomic factors start to impact on homeowners and influence lender behaviour”, said Neil Warman – Chief Commercial and Finance Officer at HML.