THE number of people in York at risk of losing their homes has decreased by nearly 40 per cent, new figures have revealed.

Legal aid chiefs said 95 mortgage possession claims (MPC) were issued in the city in the first quarter of this year – compared with about 150 in the same period last year.

Debt advisors at the York Citizen’s Advice Bureau (CAB) said the statistics could be interpreted as the “slow, green shoots of recovery”, but there were still a lot of people struggling with mortgage arrears.

Rosemary Suttill, a CAB manager said: “These figures appear to be good news, but it’s more a question of why that’s happening.

“It may be that the mortgage providers are seeing very little sense in repossessing homes because they have got a lot of properties on their hands because it’s not time for selling them on.”

And Nick Hayles, senior loans officer for York Credit Union, said the number of homeowners having trouble paying their mortgage had increased.

He said: “We are still seeing an increase in the number of people coming to us for help who have fallen behind with their mortgages in recent months.” An MPC is issued by a court on behalf of a solicitor acting for a lender when the borrower has defaulted on their mortgage. When one has been issued, it does not mean the homeowner will definitely lose their property, because of the availability of last-minute emergency help, advice and representation at the court.

The Legal Services Commission (LSC) said people have been helped to avoid losing their homes by its Housing Possession Court Duty Schemes.

These schemes, one of which is based at York County Court, provide free, immediate legal advice and representation to individuals appearing in court who are at risk of losing their home. Julie Parkin, LSC area relationship manager for Yorkshire and Humberside, said many people in York were now struggling to make their mortgage or rent payments.

She said: “The fact the Housing Possession Court Duty Scheme has been able to help so many people is wonderful news.”

City of York Council leader Andrew Waller said the fall in MPCs in the city was an “encouraging sign”.

But he said: “It still means there are nearly 100 families caught up with repossession and we do anticipate that over the summer that may change because of the expiry of the moratorium on mortgage lenders, so it’s not a reason to take our eye off the ball and we do need to make sure that people come forward when they need help.”

* The LSC funds a telephone Community Legal Advice helpline (0845 345 4 345). People on low incomes could get free advice over the phone on housing matters.