Property repossessions in the UK surged in the third quarter of 2025, yet mortgage arrears fell across both homeowner and buy-to-let sectors. The contrasting trends paint a mixed picture of the housing market, according to figures released by UK Finance.
Homeowner repossessions reached 1,390 properties in Q3 2025, marking a 51% increase compared to the same period last year. Buy-to-let repossessions rose to 900 properties, up 29% annually. Despite these increases, homeowner mortgages in arrears dropped 10% year-on-year to 84,100, while buy-to-let arrears fell 20% to 10,420 mortgages.
The repossessions «predominantly relate to mortgages arranged more than 10 years ago and remain low by historic standards and broadly in line with pre-pandemic levels», said Charles Roe, director of mortgages at UK Finance. He described the fall in arrears as a «positive sign» and stressed that lenders remain committed to supporting struggling customers. «If you are worried about your mortgage payments, please contact your lender as soon as possible to discuss the tailored help available», Roe urged.
Industry Response
Mary-Lou Press, president of NAEA Propertymark, an association for estate agents, welcomed the decline in arrears. «Falls in both homeowner and buy-to-let mortgage arrears are a welcome sign that stability is returning to the housing market after a challenging period for many borrowers», she said. Press noted that current arrears levels remain well below long-term averages, «reflecting the effectiveness of lender support and the resilience of households».
However, she acknowledged the rise in repossessions «highlights that pressures still exist, particularly for those on older mortgage products who have been struggling for some time». Press emphasized that «it remains crucial that anyone experiencing financial difficulty reaches out to their lender or seeks independent, qualified advice as early as possible».
The figures emerge as several lenders have recently reduced fixed-rate mortgage rates amid expectations of a potential Bank of England base rate cut.
Note: This article was created with Artificial Intelligence (AI).
