Lenders Report Over 25% Surge in Buy-to-Let Repossessions
The buy-to-let market has seen a significant increase in repossessions, with landlords facing growing challenges. New data from UK Finance indicates a 28.6% rise in buy-to-let mortgage repossessions for the third quarter of 2025 compared to the previous year.
Lenders Report Over 25% Surge in Buy-to-Let Repossessions
In the third quarter of 2025, there were 900 buy-to-let mortgage repossessions, a stark increase from 700 in the same period in 2024. This surge highlights ongoing financial pressures for some landlords.
Current Market Conditions
The data also reveals that there are 10,420 buy-to-let mortgages currently in arrears, representing over 2.5% of the total outstanding balance. This figure, while concerning, shows a decrease of 850 from the previous quarter.
New Loan Figures
- Number of new loans: 59,467
- Total value of new loans: £10.9 billion
- Increase in loan numbers: 22.7%
- Increase in loan value: 28.2%
Rental Yields
The average gross buy-to-let rental yield has increased to 7.15%, up from 6.93%. This uptick may indicate a more favorable environment for property investors, despite the repossession challenges.
Expert Insights
Megan Eighteen, President of ARLA Propertymark, commented on the figures, stating that they reflect a growing positive sentiment in the buy-to-let market. However, she cautioned that the rise in repossessions serves as a reminder of the ongoing affordability issues faced by landlords.
Future Outlook
Eighteen emphasized that sustained efforts to ease inflation could bolster confidence and improve borrowing conditions. Continued investment in the buy-to-let sector is crucial to increase housing supply and meet rising demand for rental properties.
The current trends suggest that while investment opportunities exist, landlords must navigate the challenges posed by affordability and operating expenses to achieve a more stable buy-to-let market.
