Properties taken back by banks rise 15% in three months as mortgage rates shoot up.
The number of home repossessions rose 15 per cent between July and September this year compared to the three months before, as mortgage rates spiked and the cost of living crisis put pressure on household budgets.
In total 700 home owners mortgaged properties were taken into possession in the third quarter of 2022, according to data from UK Finance.
But it was not just owner-occupied properties that saw a rise in repossessions. The number of buy-to-let properties that were taken into possession also rose 11 per cent from July to September, to 390.
These are the predictions from some of the country’s leading property experts.
More homeowners will struggle to afford their mortgage repayments and, as a result, repossessions will rise in 2023
Mortgage interest rate rises have added hundreds of pounds onto monthly mortgage repayments. This, along with steep rises in utility bills, fuel and grocery bills, has left many households struggling. Repossessions are currently at historically low levels, but experts are expecting to see the number rise in 2023.
Across the UK, the average rent price has increased by 10.8% since last Christmas, rising from £1,060 per month at the end of 2021 to £1,175.
Throw into that rocketing inflation, fuel poverty, increase in household poverty, the outlook is very bleak. If this is ‘Build back better’ I’d rather opt out.
In England 2020 3.2 million was the official number of households in fuel poverty in according to the latest definition.
From 1 October 2022 – 7 million – The estimated number of households across the UK in fuel poverty.
From 1 April 2023 as the current package of support for households runs out and the Energy Price Guarantee changes 8.6 million households are predicted to be in fuel poverty.
1.8 million carers, 5.9 million low-income and financially vulnerable households, 3.6 million people with a disability and 1.6 million households in off-gas homes will all be in fuel poverty from April 2023
Call to end forced installation of UK prepayment meters after millions suffer without power
Ministers are being urged to stop the forced installation of prepayment meters after revelations that 3.2 million people – the equivalent of one person every 10 seconds – were left with cold and dark homes last year as they ran out of credit.
As energy prices surged this winter, suppliers have stepped up the use of court warrants to force their way into homes to install prepayment meters, with some magistrates approving hundreds of applications at a time. For homes with smart meters, the change can be made remotely without even needing a warrant.
An estimated 600,000 people were forced to make the switch away from credit meters after racking up debt with their energy supplier in 2022, compared with 380,000 in 2021, according to a major report by Citizens Advice, which is calling for an immediate ban on the use of court warrants. The charity fears a further 160,000 people could be switched by the end of winter if no further action is taken.
Prepay meters charge for energy at a higher rate than contracts where the customer pays monthly or by direct debit, and people in debt are often left with no choice but to “self-disconnect”. For many, running out of credit is not a one-off event. More than 2 million people are being disconnected at least once a month, according to the report. A fifth of those on prepay report going without heat or light for at least 24 hours, unable to cook or wash.
I think it’s safe to say the outlook is not looking good; we have a cost of living crisis, an NHS crisis and a mental health crisis. It’s easy to see why.
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There’s no better time to consider quitting smoking as the government has set a target of 2030 for England to be smoke-free.
You can find plenty of articles on our blogs on how to quit smoking and what the benefits are. A small life change can make a mountain of a difference. Millions of families are already trying to make ends meet where they can.
Despite living in the world’s sixth biggest economy, people are still living with no place to call their home in this country. This injustice must end.
After the disruption of the Covid-19 pandemic, households are facing a cost of living crisis in 2022 which could push even more people to the brink of homelessness.
