Thousands of people across England and Wales are facing eviction in the lead up to Christmas due to an increase in repossessions.
The analysis by Tlyfe found that approximately 2,425 tenants are expected to lose their homes in the three months leading up to Christmas, from October to December.
Additionally, data from lettings and estate agent Benham and Reeves estimates that 876 mortgaged homeowners are set to see their homes repossessed before 2024.
In the rental market, repossessions have increased throughout 2024, with an increase of 6.9% in Q1 compared to Q4 2023.
Although Q2 2024 saw a decline of 1.6% versus Q1, this figure rose again in Q3 by 4.4%.
The forecasted 2,425 rental market repossessions in Q4 represents a 1.3% increase compared to Q3 and an 11.2% increase versus Q4 2023.
A total of 9,444 renters are expected to face eviction in 2024, which is a 10.8% increase from 2023.
In the mortgage market, repossession rates have also been climbing.
In Q1, 769 mortgaged homes were repossessed, marking a 29% increase on Q4 2023.
This figure rose by a further 13% in Q2, and while it cooled by 1% in Q3, it is forecast to climb again in Q4 by 1.7%.
As a result, 3,375 mortgaged homes are expected to be repossessed in 2024, reflecting a significant 29% jump compared to 2023.
Adam Pigott, CEO of OpenBrix, 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.
“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.
Pigott added: “Unfortunately, if you are facing an eviction, the outcome is often inevitable.
“Our advice would be to get ahead of the game while proceedings are ongoing and get back in the market.
“Get yourself rental ready in terms of documentation, references and, if possible, have a deposit saved for a new property.
“In doing so, you can help streamline the process of finding a new rental property and minimise any time between leaving your current property and entering a new one.”
Marc von Grundherr, director of Benham and Reeves, 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.
“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.
Von Grundherr added: “Those who have come to the end of a 5-year fixed term, for example, will have seen a huge jump in the mortgage payment required, having originally taken a mortgage out when the base rate was sub one percent, while now renegotiating terms when it sits at almost five percent.
“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.”
