The latest figures released by UK Finance have revealed that the number of private landlords’ properties being repossessed saw a 40% year-on-year rise during Q3 2019.
According to the data, 800 such repossessions of buy-to-let mortgaged properties occured between July and September 2019, up from 570 in the corresponding quarter in 2018.
Despite mortage rates remaining low, the increase in landlords losing their homes has continued and has been partly driven by a backlog of older cases being processed in line with the latest regulatory requirements.
Worryingly, there were also 4,550 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in Q3 ‘19, up 5% year-on-year.
David Smith, of the Residential Landlords Association said, “Repossessions for mortgage arrears take place for many different reasons.
“Mortgage interest relief changes, which are now almost fully implemented, the increasing cost of regulation and the ever increasing time to repossess a property are all major factors.
“Since most repossessions of this kind lead to tenants being evicted it is vital that the next government actively supports the majority of landlords doing a good job to provide the homes to rent the country needs.
“If we want to develop long-term tenancy models we need also to support landlords to stay in the market long term.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“Surprising to see the number of buy-to-let repossessions has surged by some 40% year on year. It’s certainly not something we are seeing within the boundaries of the London rental market, as demand remains robust and rents continue to climb.
While a number of new legislators changes have dented the financial return available to the average landlord, a buy-to-let investment is still one of the safest going and we are yet to see a single owner fall into arrears so far this year, nor have we seen a single landlord fall foul of a repossession in the last five years.
Of course, the UK rental sector is a vast and varied landscape and not every landlord will benefit from the strong demand found within the capital. With that in mind, this latest news should act as a wake-up call for the Government to end its stranglehold on the very people that provide a home for the masses reliant on the renting in order to survive.”
Director of Benham and Reeves, Marc von Grundherr said, “Surprising to see the number of buy-to-let repossessions has surged by some 40% year on year. It’s certainly not something we are seeing within the boundaries of the London rental market, as demand remains robust and rents continue to climb.
“While a number of new legislators changes have dented the financial return available to the average landlord, a buy-to-let investment is still one of the safest going and we are yet to see a single owner fall into arrears so far this year, nor have we seen a single landlord fall foul of a repossession in the last five years.
“Of course, the UK rental sector is a vast and varied landscape and not every landlord will benefit from the strong demand found within the capital. With that in mind, this latest news should act as a wake-up call for the Government to end its stranglehold on the very people that provide a home for the masses reliant on the renting in order to survive.”
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