Home repossessions fell in the second quarter of 2026 despite financial pressures on homeowners and landlords, according to UK Finance.
Some 1,150 homeowner mortgaged properties were repossessed in the second quarter, 8% less than in the previous quarter and 14% less than a year earlier. Buy-to-let repossessions totalled 630, down 22% quarter-on-quarter and 20% year-on-year.
Arrears also decline
UK Finance said overall repossessions remain significantly below long-term averages. The repossessions currently taking place predominantly relate to older mortgages, with more than two-thirds involving mortgages arranged at least a decade ago.
Homeowner mortgages in arrears of 2.5% or more of the outstanding balance fell to 77,940, down 1% from the previous quarter and 11% annually. Buy-to-let mortgages in arrears fell to 8,390, a 6% quarterly drop and a 26% annual decrease.
Industry reaction
James Tatch, head of analytics at UK Finance, said: “The number of mortgages in arrears are falling for both residential and buy-to-let mortgages – and possessions are also down year-on-year for the first time since late 2023, and remain significantly below the long-term historic average.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, noted: “Despite rising mortgage rates on the back of the Middle East conflict, the downwards trend in arrears and possessions continues.” He added that lenders continue to show forbearance and work with borrowers to find solutions, with repossession being a last resort.
Encouraging but cautious
Ian Harris, president of NAEA Propertymark, called the figures “encouraging” but stressed the financial pressures still affecting homeowners and landlords. “Early engagement is key to helping those facing financial difficulty, providing an opportunity to explore the support and options available before circumstances become more difficult to resolve.”
