Homeowner and landlord repossessions rose in the final three months of the year as borrowers were challenged by the cost of living, according to official data.  

Mortgage possession claims jumped 39% to 6,080 in the period from a year ago, Ministry of Justice figures show.  

The department adds that order claims for homeowners lifted 55% to 4,178, warrants were up 48 % to 3,305 and repossessions by county court bailiffs rose 61% to 957. 

The data comes as regulators warn parliament that possession levels will rise if lending restrictions are eased.    

Landlords suffered smaller rises, with possession claims lifting 3% to 24,010, orders up 2% to 18,416, warrants were 7% higher at 10,877 and repossessions rose 5% to 7,020. 

Rises in landlord possession claims were driven by an increase in London although this is offset slightly by falls in Wales, the North East, and the South West.  

“Increases in mortgage possession claims have been recorded in all regions. Private landlord and mortgage claims remained concentrated in London,” the ministry adds. 

The median average time from claim to mortgage repossession has fallen to 46 weeks, down from 50.7 weeks in the final quarter of last year from 12 months ago. 

The department says: “The number of mortgage possession actions have all risen compared to the fourth quarter of 2023, while the median time taken from claims to orders reflect this trend, also rising slightly.  

“In contrast, timeliness from claim to warrants and repossessions continues to fall this quarter compared with a year ago, as increased case volumes progress through the system.” 

For landlords, the median average time from claim to repossession rose to 25 weeks, up from 23.6 weeks a year ago. 

NAEA Propertymark president Toby Leek says: “It’s difficult to witness the real-world effects of higher interest rates and instability within the wider economy impacting homeowners. 

“The last twelve months have been challenging for many, however, with recent reductions in the base rate and inflation broadly sitting within the initially targeted range that the Bank of England has been aiming for, we should slowly start to see more affordable mortgage products being offered.” 

“Throughout the year this should help ease the financial burden that many people have been facing, including those who are coming to the end of their fixed-rate mortgage.”   

Earlier this month, Bank of England governor Andrew Bailey said “a public debate” is needed over the trade-off between higher repossessions and more people entering the mortgage market if lower stress tests are adopted, as many in the property industry have called for.