The level of arrears and possessions in the buy-to-let sphere is worrying - Comment on the UK Finance arrears and possession figures for Q2 from Adam Oldfield at Phoebus Software

10 August 2023

Adam Oldfield, chief revenue officer at Phoebus Software, says “Unfortunately, the increase in the number of mortgages in arrears is no real surprse given the increase in borrowing costs and the rising cost of living. We have to hope that lenders have been preparing for this exact situation. Looking at the number of homeowner mortgages taken into possession, which fell compared to the previous quarter, it looks as though that may be the case and lenders are showing an increased level of forebearance in this area.

“However, the level of arrears and possessions in the buy-to-let sphere is worrying. The rising costs of rents in the private sector is well reported, so it has to be a concern to lenders that the number of landlords in arrears has increased by such a high percentage. Landlords will no doubt come under the microscope again, so perhaps Michael Gove’s call for the EPC regulations to be delayed is a better idea than at first received. We all know how vital the rental sector is, especially when there are so many barriers to get onto the property ladder, so lenders will need to be talking to their landlord clients before the situation gets any worse.”