The North-South divide in home repossessions has narrowed by a fifth 2014 as repossessions fall faster in the North.
There was a rapid decline in proportion of Northern towns with more repossessions than average between 2013 and 2014, according to new research released today by e.surv chartered surveyors.
A combination of low inflation and rising wages have helped shrink the number of Northern towns with above-average repossession rates from 68% in 2013 to 44% in 2014.
But the North West still has highest repossession rates of any region, with 4.6 repossessions per 1,000 households.
And every major town in North East has more repossessions than average
E.surv's analysis of court-ordered repossessions in England and Wales, broken down by postcode, reveals the North saw 4.1 repossessions per 1,000 households in 2014, while the South saw just 2.9.
This compares to 5.4 and 3.9 respectively one year ago, meaning the gap has narrowed 19% year-on-year.
Across England and Wales, home repossessions have fallen.
There were 39,938 repossession orders in England and Wales in 2014, down 25% from 53,325 in 2013.
There are now 3.5 repossession orders per 1,000 households in England and Wales, down from 4.7 in 2013.
There are further signs of improvement. In 2014, only six out of the top 10 repossession postcodes were in the North, while in 2013 the North was home to eight out of the top 10 repossession postcodes.
Richard Sexton, director of e.surv chartered surveyors, explains: "The North-South repossession gap is clearly closing as the financial performance of the South East spreads across the country.
"Northern towns are less prominent as repossessions hotspots. Brits are feeling the benefits of falling fuel and food prices.
"All the while, wages are increasing, meaning there is more money to go around. This has given financially fragile homeowners the chance to bolster their credit and retreat from the repossession threat.
"The economic environment has helped greater numbers in the North, as there were more borrowers on the edge in this area."
Sexton said the Government's plans to devolve power to the regions could help eradicate the remaining rift.
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