The number of buy-to-let mortgages in arrears and properties taken into possession both saw a decline during the second quarter of the year. Data from UK Finance indicates that 8,390 loans had arrears of at least 2.5% of the outstanding balance, representing a 6% reduction compared to the previous three months.
Lenders took possession of 630 buy-to-let properties in the second quarter. This figure is down 22% from the first quarter and 20% lower than the same period last year.
Despite these reductions, Ian Harris, the NAEA Propertymark president, noted that financial pressures continue to affect homeowners and landlords. James Tatch, UK Finance’s head of analytics, highlighted that possessions are down year-on-year for the first time since late 2023.
Separately, Ministry of Justice figures show that landlords in England and Wales made 23,635 possession claims against tenants, a 6% increase from a year earlier. These cases involve landlords seeking possession from tenants, distinct from lenders taking control of mortgaged properties.