New official figures reveal contrasting trends in the private rented sector. UK Finance data indicates a substantial reduction in financial distress for buy-to-let landlords, with mortgage arrears falling sharply. However, Ministry of Justice statistics show an increase in landlords initiating court proceedings to recover properties from tenants.
UK Finance recorded 8,390 buy-to-let mortgages in arrears of at least 2.5% of the outstanding balance during the second quarter of 2026. This represents a 26% decrease compared to the same period in 2025. The number of buy-to-let mortgaged properties taken into possession also fell by 20% year-on-year to 630.
In contrast, landlords in England and Wales issued 23,635 possession claims between April and June 2026, marking a 6% increase from the 22,352 claims issued in the equivalent quarter of 2025. Accelerated possession claims saw a 16% annual rise to 8,569.
The Ministry of Justice has cautioned that it is not yet possible to definitively link changes in possession activity to the Renters’ Rights Act reforms, which took effect in England on 1 May 2026. However, the timing of the increase in accelerated claims is consistent with some landlords acting before the Section 21 procedure closed on 31 July 2026 for notices served before 1 May.