Buy to let mortgage possessions fall
12:01 AM, 14th August 2026, 6 hours ago
The number of buy to let mortgages in arrears and properties taken into possession fell during the second quarter.
Data from UK Finance shows 8,390 loans with arrears of at least 2.5% of the outstanding balance, 6% fewer than in the previous three months.
These cases represented 0.44% of all BTL mortgages, while the lightest arrears category dropped 7% to 2,980.
Lenders took possession of 630 buy to let properties, down 22% from the first quarter and 20% year on year.
BTL mortgage pressures remain
Ian Harris, the NAEA Propertymark president, said: “Whilst these figures are encouraging, it is important not to lose sight of the financial pressures that continue to affect homeowners and landlords.
“The reduction in mortgage arrears and repossessions is welcome, but affordability remains a challenge for many across the housing market.”
UK Finance’s head of analytics, James Tatch, said: “The number of mortgages in arrears are falling for both residential and buy to let mortgages – and possessions are also down year-on-year for the first time since late 2023, and remain significantly below the long-term historic average.”
Landlord claims increase
Meanwhile, the Ministry of Justice says landlords made 23,635 possession claims in England and Wales, 6% more than a year earlier.
Those cases concern landlords seeking possession from tenants, rather than lenders taking control of mortgaged buy to let properties.
Accelerated claims rose 16% and private landlord cases increased 5%, while social landlord proceedings fell 3%.
Warrants dropped 6% to 9,715 and repossessions carried out by county court bailiffs declined 3% to 6,560.
Possession figures differ
The Ministry recorded 1,008 mortgage repossessions by county court bailiffs, 14% fewer than in the second quarter of 2025.
Its data cover court actions in England and Wales, while UK Finance collects UK-wide lender figures that include properties surrendered voluntarily.
UK Finance reported 1,150 homeowner properties and 630 buy to let homes taken into possession, whereas the Ministry does not separate its mortgage total by loan type.
More than two-thirds of the possessions recorded by UK Finance related to mortgages arranged at least a decade ago.
