Mortgage repossessions by borough

What does this map show?

The map shows the rate of mortgage repossessions in London.

Newham has the highest rate of mortgage repossession in London, with an annual average of 19 mortgage holders per 1000 receiving a repossession order in 2010-2011(roughly 375 households in total per year). This was followed by Barking and Dagenham with 15 per 1000 households, Greenwich at 11 per 1000 and Croydon at 10 per households receiving repossession orders. In terms of numbers, Croydon had the highest number of households receiving repossession orders (around 550) as it has a much larger buying-with-mortgage market than most London boroughs. Islington has the lowest rate of mortgage repossession in London, at only 3 per 1000 households receiving such orders.

Mortgage repossessions are clustered in East London. Out of the 10 boroughs with the highest rates of repossession orders, all except Croydon are in the Inner East & South and Outer East & North East. But there is also a significant Inner/ Outer difference. None of the boroughs in Inner West London have rates of repossession above the London average. All but one of those in the Outer East do.

Long term trends in mortgage repossession suggest that they peaked in 2008 in London and elsewhere and have been declining since then. Compared to 2007-08, the number of mortgage repossessions fell in every borough while the rate either fell or held steady in 2010-2011. In Newham and Barking and Dagenham, the boroughs with the highest rates, the number of mortgage repossessions halved between 2007-08 and 2010-11.

The fall may be a result of a number of different factors, including low interest rates, and the introduction of the Mortgage Pre Action Protocol (MPAP) for possession claims relating to mortgages which came into effect in 2008. The aim of the protocol is to reduce the number of repossession orders, by encouraging landlords to pursue other means of paying off arrears.

Additional information

The statistics are presented as a proportion of the types of tenure: i.e. mortgage repossessions as a proportion of mortgage holders. It is important to do this as the mix of tenures - renters and mortgage holders - varies from borough to borough.

Claims leading to an order are orders issued by the court following a hearing on the claim. This is what the graph shows.

Please note that the court order may not always result in repossession as the order can be suspended if a suitable repayment arrangement is agreed. The figures do, however, indicate the serious extent of mortgage debt or rent arrears that a household faces.

Data used

Ministry of Justice statistical bulletins, data is average for 2010 and 2011.

Mortgage data include all types of lenders whether local authority or private (e.g. banks and building societies).

Indicator last updated: 26 April 2012