Statistics on mortgage and landlord possession actions in the county courts – first quarter 2009
15 May 2009
The Ministry of Justice has published figures showing the numbers of mortgage and landlord possession actions in the county courts of England and Wales for the first quarter of 2009.
- The figures also also some revisions for the previous quarters.
- The figures report how many possession proceedings have been issued, and how many orders for possession have been made by the county courts.
- They do not indicate how many properties have actually been repossessed. Repossessions can occur without a court order being made while not all court orders result in repossession.
Figures showing the actual number of repossessions are published on a quarterly basis by the Financial Services Authority (FSA) and the Council of Mortgage Lenders (CML). Further information can be found on their websites.
Important note – introduction of Mortgage Pre-Action Protocol on 19 November 2008
A new Mortgage Pre-Action Protocol, approved by the Master of the Rolls, for possession claims relating to mortgage or home purchase plan arrears came into effect on 19 November 2008. It gives clear guidance on what the courts expect lenders and borrowers to have done prior to a claim being issued.
The introduction of the Mortgage Pre-Action Protocol coincided with a fall of around 50% in the daily and weekly numbers of new mortgage repossession claims being issued in the courts as evidenced from administrative records. As orders are typically made (where necessary) around 8 weeks after claims are issued, the downward impact on the number of mortgage possession orders made was seen in the first quarter of 2009. Presently, the extent to which the MPAP has resulted in the issue of claims being delayed rather than abandoned is unclear.
More details about the protocol
Mortgage Possession actions during the first quarter of 2009
- 22,609 mortgage possession claims were issued on a seasonally adjusted basis, 42% lower than in the first quarter of 2008 and 13% lower than in the fourth quarter of 2008.
- 17,054 mortgage possession orders were made on a seasonally adjusted basis, 39% lower than in the first quarter of 2008 and 43% lower than in the fourth quarter of 2008.
- 47% of mortgage possession orders were suspended, broadly the same as in the first quarter of 2008 and 45% in the fourth quarter of 2008.
Landlord Possession Actions during the first quarter of 2009
- 35,745 landlord possession claims were issued using the standard and accelerated possession procedures on a seasonally adjusted basis, 5% lower than in the first quarter of 2008 and 1% lower than in the fourth quarter of 2008.
- 27,485 landlord possession orders were made through the standard and accelerated possession procedures on a seasonally adjusted basis, 5% lower than in the first quarter of 2008 and 3% lower than in the fourth quarter of 2008.
- 44% of landlord possession orders made through the standard and accelerated possession procedures were suspended compared to 42% in the first quarter of 2008 and in the fourth quarter of 2008.
Mortgage and landlord possession statistics
Proposed future changes to published National Statistics on possession actions
A technical note is being published alongside this bulletin, setting out two proposed changes to the future publication of National Statistics on court actions for possession.
In summary, the proposed changes are as follows:
- A change to the definitional basis of the published National Statistics on the number of possession orders made in the county courts of England and Wales. We propose publishing the number of possession claims that lead to an order, rather than number of possession orders as at present.
- The inclusion of a new, additional Local Authority level breakdown of the published National Statistics for both the ‘claims’ and ‘orders’ series.
Users are invited to comment on the detail of these proposals, with responses requested by 12 June 2009.
Explanatory notes
1. The data provided in each of the tables relate to possession claims issued and orders made in county courts in England and Wales.
2. The mortgage data include all types of lender whether local authority or private (e.g. banks and building societies). The landlord data include all types of landlord whether social or private sector, and cover actions made using both the standard and accelerated possession procedure.
3. The Q1 2009 figures are provisional and therefore liable to revision to take account of any late amendments.
4. Figures on mortgage and landlord possession actions are published on a quarterly basis.
5. The information contained in this publication has been produced using the Management Information System (MIS), a data warehousing facility drawing data directly from court-based information systems.
6. The mortgage possession figures do not indicate how many houses have actually been repossessed through the courts; not all orders result in the properties actually being repossessed.
- Claims Issued
A claimant begins an action for an order for possession of property by issuing a claim in a county court. - Orders Made
The court, following a judicial hearing, may grant an order for possession immediately. This entitles the claimant to apply for a warrant to have the defendant evicted. However, even where a warrant for possession is issued, the parties can still negotiate a compromise to prevent eviction. - Suspended Orders
Frequently, the court grants the claimant possession but suspends the operation of the order. Provided the defendant complies with the terms of the suspension, which usually requires the defendant to pay the current mortgage/rent instalments plus some of the accrued arrears, the possession order cannot be enforced.
7. The statistics shown for 'properties taken into possession' are existing published figures from the Council of Mortgage Lenders, which is an industry body representing around 98% of the UK residential lending industry. It should be noted that:
- Ministry of Justice statistics on court actions cover England and Wales only. CML statistics cover the whole of the UK.
CML statistics on actual possessions include properties surrendered voluntarily, and are published for half-yearly periods. Given the time lags involved, some of the court orders for these possessions may have been granted in earlier time periods. - Mortgage possessions counted in the CML statistics predominantly relate to the non-repayment of loans which are secured as a "first charge" against the property. The large majority of 'second charge' lending (any loan secured on a property for which a separate first charge loan already exists) falls outside the membership of the CML and therefore any resulting repossessions will not be counted in the CML's figures.
- For more details and other related statistics, please visit the CML website or contact the CML Press Office on 020 7438 9822.
8. The Department for Communities and Local Government (CLG) is responsible for government policy on housing and the housing market. Queries on the wider policy implications of these statistics should therefore be directed to the CLG Press Office on 020 7944 4618.
9. Any further media enquiries on this news release should be directed to the Ministry of Justice Press Office on 020 3334 3536.
10. The release schedule for the rest of the year is as follows: 2009 quarter 2 statistics to be released on Friday 14 August 2009.
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