0:04 AM, 11th December 2024, About a month ago 11
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Thousands of people across England and Wales are facing the prospect of homelessness in the lead-up to Christmas, new figures reveal.
Analysis from Tlyfe, a tenant app, and Benham and Reeves, the lettings and estate agency, paints a grim picture of the PRS and owner-occupier markets.
Tlyfe’s data indicates that around 2,425 tenants are expected to lose their homes between October and December because the landlord is repossessing the property.
This represents an 11.2% increase compared to the same period last year.
The firm says that private rented sector repossessions have been steadily rising throughout 2024.
While there was a slight dip in the second quarter, the trend resumed its upward trajectory in the third quarter and is projected to continue into the final quarter of the year.
The chief executive of OpenBrix, Adam Pigott, said: “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.”
He added: “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.”
The data from Benham and Reeves paints a bleak picture for thousands of homeowners with an estimated 876 mortgaged homeowners losing their homes before the end of 2024.
This trend mirrors the rising number of rental repossessions.
In the first quarter of 2024, 769 mortgaged homes were repossessed by the lender, a 29% increase compared to the previous quarter.
While the rate of repossessions slowed slightly in the third quarter, it’s expected to surge again in the final quarter, with a projected 47% increase compared to the same period in 2023.
Overall, 2024 is shaping up to be a challenging year for homeowners, with a total of 3,375 mortgaged homes expected to be repossessed, a 29% increase over 2023.
Director of Benham and Reeves, Marc von Grundherr, said: “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.”
He added: “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.
“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.”
GlanACC
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Sign Up8:40 AM, 14th December 2024, About a month ago
This is of course, absolute cobblers. 1000's of tenants won't be evicted before Christmas. Any tenant issued with a S21 now won't be out before next June if they sit tight and have to get evicted by a bailiff.
Any tenant that goes to court now will still be given till after Christmas to leave, and then they will sit tight until evicted by a Bailiff - so maybe next April.
There courts don't have enough bailiffs to evict 1000's of tenants in less than 6 months.
Any tenant that just voluntarily leaves before Christmas must be few and far between.