Target Group comment on UK Finance mortgage arrears and possessions update

08 August 2024

Comment from Mel Spencer of Target Group on the UK Finance mortgage arrears and possessions update statistics.

"The rise in the number of possessions has continued an upward trajectory all year, with both homeowner and buy-to-let possessions on the rise. The biggest surprise may be the number of buy-to-let possessions up a whopping 51% year-on-year.

The pressures on landlords and tenants have been increasing exponentially with rising mortgage rates and increasing tax pressures forcing many landlords to relay the costs down to tenants in increased rents. Today’s figures demonstrate that, for some, those pressures have just become far too much, but it is alarming as it will further decrease the supply of rental housing,

A 31% year-on-year increase in homeowner possessions while still significant, looks modest in comparison with the buy-to-let percentages, although the real numbers are higher with almost 1000 people having lost their homes.

The one positive is that while the number of arrears, compared to last year, are still up 51% for buy-to-let and 17% for homeowners, they have levelled off this quarter, hopefully reflecting the top of the curve and the start of a downward trend as inflationary pressures recede".