UK Finance has reported that more landlords are struggling to keep up with their mortgage payments.
In the last quarter of 2023, the number of buy-to-let mortgages in arrears more than doubled compared to the same period in the previous year, marking a significant 124% increase.
This rise can be largely attributed to the impact of elevated mortgage rates.
The arrears, primarily of lower value, saw an 18% increase in Q4 2023 when compared to the preceding quarter. However, the growth is even more pronounced when compared to the figures from the same period in 2022.
According to UK Finance, moves to repossess homes from landlords were at the highest level since the pandemic.
Meera Chindooroy from the National Residential Landlords Association (NRLA) said:
"Faced with such challenges, many landlords are simply opting to leave the market altogether, exacerbating an already serious shortage of homes to rent."
The NRLA also provided data on homeowners in mortgage arrears in Q4 2023, which totalled 93,680 individuals facing payment difficulties. This was a 7% increase from the previous quarter and a 25% surge compared to Q4 2022.
While home repossessions remain uncommon, they are on the rise. Lenders and charities emphasise the importance of early action for those encountering financial challenges.
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