Fewer people are losing their homes, due to measures introduced by the government to support homeowners during the current economic climate, according to the Ministry of Justice.
A total of 17,054 orders against mortgage defaulters were issued by the courts from January to March 2009, compared to 29,771 in the previous quarter – a reduction of 43 per cent.
However, almost half (47%) of mortgage possession orders were suspended, broadly the same as in the first quarter of 2008.
The figures also show a drop of 13 per cent in the number of mortgage possession claims issued since the last quarter of 2008, down to 22,609.
“The government has taken decisive action to support homeowners and protect vulnerable families from the threat of repossession,” said the Lord Chancellor and Secretary of State for Justice, Jack Straw.
“Although there is no room for complacency, these figures demonstrate that active intervention works and that problems can be resolved without ending up in court. We will continue to do all we can to help lenders and borrowers work together to find solutions.”
The MOJ said that the introduction of the Mortgage Pre-Action Protocol, which came into effect last November, coincided with a fall of around 50% in the daily and weekly numbers of new mortgage repossession claims being issued in the courts.
As orders are typically made 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. The extent to which the MPAP has resulted in the issue of claims being delayed rather than abandoned is unclear.
Date: 16th, May, 2009
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