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Terraced houses more likely to be repossessed

As much as 40% of home repossessions across the UK during 2011 will affect those living in terraced houses.

According to HML, 13,193 terraced homes will be repossessed before the year's out, with the financial outsourcer predicting 33,258 properties in total will be repossessed in 2011.

In addition to those in terraced houses, 24% of repossessed properties will be flats (8,107), semi-detached homes will account for 21% (6,916) and detached houses 15% (5,042).

"Our forecast shows terraces and flats across the UK are generally more at risk of repossession than detached and semi-detached homes," said HML's Chief Commercial and Finance Officer Neil Warman.

"This trend isn't new; terraces and flats tend to be the property of choice for first-time buyers and lenders understand granting mortgages to people who haven't had one before is riskier than lending to someone with an established track record."

Those living in London will account for 0.34% of all repossessions this year (the highest in the UK), while those in the South West are least likely to lose their properties.

"All borrowers have to contend with the rising cost of living, employment uncertainty, stagnant wages and the fall-out from the largest cuts to government spending for more than a generation," added Mr Warman.

"This is likely to feed through into higher repossessions next year, when we are forecasting an overall figure of between 35,000 and 40,000 repossessions."

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