Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what systems he has in place to monitor the rates of (a) landlord possession orders and (b) mortgage possession orders.

Arrears and repossession levels remain low: according to UK Finance data, 700 residential mortgaged properties and 390 buy-to-let mortgage properties were repossessed in Q3 2022. These were both lower than the 1,070 and 640 respectively in Q1 2020 (pre-pandemic).

The Government remains watchful of any emerging trends in this space and engages regularly with mortgage lenders and the Financial Conduct Authority (FCA) to monitor market developments. The Government also closely monitors a wide range of sources that measure levels of financial distress amongst consumers.

It is worth noting though that around 75% of residential mortgage borrowers, and 73% of buy-to-let mortgage borrowers, are on fixed-rate deals and therefore shielded from interest rate rises in the near term. If mortgage borrowers do fall into financial difficulty, FCA guidance requires firms to provide support through tailored forbearance options. The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes clear that repossession must always be the last resort for lenders.

More broadly, the Government has taken decisive action to support households across the UK through the cost-of-living challenges ahead, whilst remaining fiscally responsible. In addition to the £37 billion of support for the cost of living already announced for 2022-23, the Government has announced further support for next year designed to target the most vulnerable households. This cost-of-living support is worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and people with disabilities. The Government is also continuing to provide support to all households through the Energy Price Guarantee, which will save the average UK household £500 in 2023-24.