Home repossessions in the UK increased slightly in the first quarter of 2026, according to new data from UK Finance, but the number of mortgages in arrears continued to decline for both residential and buy-to-let properties. The industry body noted that repossessions remain significantly below long-term averages.
Repossession Figures
Some 1,250 homeowner mortgaged properties were repossessed in the first three months of 2026, a 3% rise compared with the previous quarter and a 2% increase year-on-year. Meanwhile, 810 buy-to-let (BTL) mortgaged properties were repossessed, up 5% from the previous quarter but unchanged from a year earlier.
UK Finance emphasised that repossessions are still well below historical peaks. The current figures contrast sharply with the global financial crisis, when 216,400 mortgages were in arrears at the peak in the second quarter of 2009.
Arrears Decline
The overall proportion of mortgages in arrears remains low, at 0.91% for homeowner mortgages and 0.47% for BTL mortgages. Specifically, 79,110 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance, a 2% fall from the previous quarter and a 12% drop year-on-year. For BTL mortgages, 8,960 were in similar arrears, down 6% quarter-on-quarter and 24% lower than a year earlier.
Context and Advice
UK Finance noted that current repossessions predominantly relate to older mortgages, with more than two-thirds involving loans arranged at least a decade ago. While repossession is a last resort, the body said it can help customers exit their mortgage while retaining as much equity as possible.
Mortgage rates have risen amid geopolitical tensions, and despite recent slight declines, they remain elevated due to uncertainty over interest rate direction.
James Tatch, head of analytics at UK Finance, said: “The number of mortgages in arrears continues to fall for both residential and buy-to-let mortgages. While possessions are up very slightly on the previous quarter, they remain low by historic standards. Lenders stand ready to support customers who may be worried about meeting their repayments. We would always recommend customers contact their lender as soon as possible to discuss the tailored help available.”
