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, commented on the figures: “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.”