Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government, following reports that mortgages in arrears hit a seven-year high in the final quarter of 2023, what assessment they have made of the impact on (1) housing stability, and (2) homelessness rates.

The Government is closely monitoring levels of arrears and repossessions, which remain low by historic standards. Affordability assessment and stress testing of mortgage applications is helping ensure households do not move into arrears.

Lenders representing over 90% of the market have agreed to our Mortgage Charter, which includes new flexibilities to help customers manage their repayments over a short period. This is helping to support vulnerable households.

Financial Conduct Authority (FCA) rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support.

The Government has also put in place measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, protection in the courts through the Pre-Action Protocol, and the Housing Loss Prevention Advice Service (HLPAS).