More Londoners than ever are losing their rented home through landlord repossessions. Data analysis by Urbs shows that in the last 3 years the rate of landlord repossessions has risen sharply. And the data shows that this is a particular problem for London, as the rate for England as a whole has seen only a gradual rise.
In the third quarter of 2014 (the most recent data available) there were 4,137 rented home repossessions in London. That’s rate of 2.45 per thousand, and double the rate for England as a whole.
Renting has become more popular as high property prices make buying a home unaffordable for many people. That problem is most acute in the capital, particularly for younger Londoners.
Rising prices have also seen the end of the negative equity trap, which used to lead to large number of mortgage repossessions in London. These have fallen from their peak in the third quarter of 2006 of 1,181 homes to just 218 last summer. That is back to the level for repossessions last seen in 2003.
The picture of home repossessions across the capital shows a clear divide between richer and poorer boroughs. Southwark, Croydon and Newham have nearly three times the number of the more affluent Sutton, Kingston and Richmond.
Repossession figures are based on county court action rather than actual incidents. Some homes are repossessed without court action and some court actions do not lead ultimately to repossession.