Homeowner repossessions up 51% in a year but figures ‘below long-term average’

The number of homeowner mortgaged properties being repossessed in the third quarter of this year was 51% higher than the same period in 2024, according to figures released by a banking and finance industry body.

But UK Finance, which released the figures, said that despite the increase, repossessions remain significantly below long-term averages.

Some 1,390 homeowner mortgaged properties were repossessed in the third quarter of 2025, marking a 51% annual increase and a 4% rise compared with the previous quarter.

In addition, 900 buy-to-let mortgaged properties were repossessed in the third quarter of 2025, which was a 29% annual increase and 14% higher than in the previous quarter.

Current repossession levels are broadly in line with those seen in the five years before the coronavirus pandemic, UK Finance said.

The figures also showed that the number of mortgages in arrears has fallen.

In the third quarter of 2025, there were 84,100 homeowner mortgages in arrears of 2.5% or more of the outstanding balance, which was 10% down on a year earlier and a 4% fall on the previous quarter.

The number of buy-to-let mortgages in arrears also fell, to 10,420, marking an annual decrease of 20% and a fall of 8% compared with the previous quarter.

Charles Roe, director of mortgages at UK Finance, said the falls in mortgage arrears are a “positive sign”.

He said 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”.

Mr Roe added: “Lenders remain committed to supporting customers who may be struggling. If you are worried about your mortgage payments, please contact your lender as soon as possible to discuss the tailored help available.”

In recent weeks, several lenders have reduced the rates on the fixed-rate mortgages they are offering, amid expectations of a possible further Bank of England base rate cut on the horizon.

Mary-Lou Press, president of NAEA (National Association of Estate Agents) Propertymark said: “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.

“It’s particularly encouraging to see that arrears remain well below long-term averages, reflecting the effectiveness of lender support and the resilience of households.”

But she said the rise in repossessions “highlights that pressures still exist, particularly for those on older mortgage products who have been struggling for some time”.

“It remains crucial that anyone experiencing financial difficulty reaches out to their lender or seeks independent, qualified advice as early as possible,” she said.