The number of buy-to-let properties repossessed in the UK remained steady in the final quarter of 2024 but saw a significant year-on-year increase, according to data from UK Finance.
Figures released by the trade body indicate that approximately 700 buy-to-let properties with outstanding mortgages were repossessed between October and December 2024. While this number was largely unchanged from the previous quarter, it marked a 30% rise compared to the same period in 2023.
Landlords also saw a decline in mortgage arrears, with 12,610 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance during the fourth quarter of 2024. This represented a 3% drop from the previous quarter and a 7% decrease compared to the fourth quarter of 2023.
However, homeowner repossessions increased notably towards the end of 2024. UK Finance reported that 1,030 homeowner-mortgaged properties were repossessed in the fourth quarter, a 12% rise from the preceding quarter and a staggering 54% increase compared to the same period a year earlier.
Despite the uptick, UK Finance emphasised that repossession levels remain considerably lower than historical averages. Total home repossessions in the fourth quarter of 2024 were 87% lower than the 13,200 recorded in the first quarter of 2009, during the height of the financial crisis. They were also 13% below the 1,990 repossessions recorded in the fourth quarter of 2019, before the onset of the COVID-19 pandemic.
Mortgage arrears levels are also significantly lower than those seen following the late-2000s financial downturn. In the first quarter of 2009, 209,600 homeowner and buy-to-let mortgages were in arrears—more than twice the current figure.
While the overall mortgage landscape remains more stable than in previous economic crises, the rising repossession figures highlight ongoing financial pressures on both landlords and homeowners as they navigate a challenging economic climate.