Last year saw 5,160 homeowner mortgaged properties repossessed, representing a 39% increase compared with 2024, according to figures from a leading UK banking and finance body. In 2024, 3,710 properties were repossessed.
Despite the rise, overall repossession numbers remain well below long-term averages, the report emphasised. In fact, the total for 2025 is significantly lower than the 44,100 homeowner repossessions recorded in 2009 during the aftermath of the financial crisis.
Looking at the final quarter of 2025, 1,210 homeowner repossessions were recorded. This marked a 17% increase compared with the same period in 2024, but it was still 13% lower than the previous quarter’s figure.
Mortgage arrears remain an important factor. In Q4 2025, 80,490 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance. This represented a 4% decline from the previous quarter and a 13% fall from the same period in 2024.
Of these, 27,780 mortgages fell into the lightest arrears category, representing between 2.5% and 5% of the outstanding balance. This was down 4% from the previous quarter and 12% lower than a year earlier.
Meanwhile, 30,280 homeowner mortgages were in the most severe arrears bracket, with over 10% of the balance outstanding. This also decreased by 4% compared with the previous quarter and was 9% lower than a year before.
Overall, the proportion of homeowner mortgages in arrears remains low, at just 0.92%, according to UK Finance.
Buy-to-let (BTL) mortgages also saw improvements. Mortgages in arrears of over 2.5% dropped 9% compared with the previous quarter, reaching 9,520 in Q4 2025, a 25% decline from the same period in 2024.
In the same quarter, 770 BTL mortgaged properties were repossessed. This was 14% lower than the previous quarter but 10% higher than a year earlier.
Looking at the longer-term picture, the number of homeowner and BTL mortgages in arrears peaked at 216,400 in Q2 2009 during the global financial crisis.
UK Finance noted that most current repossessions involve older mortgages. Over two-thirds of repossessions were linked to mortgages taken out at least a decade ago. For those struggling with payments over a long period, repossession can allow them to exit their mortgage while retaining as much equity as possible.
Lenders continue to emphasise that repossession is always a last resort and that they aim to help customers remain in their homes wherever feasible. Anyone concerned about mortgage payments is encouraged to speak with their lender, with no impact on credit scores for reaching out for support.
James Tatch, head of analytics at UK Finance, said that repossession numbers remain low compared with historical levels and broadly align with pre-pandemic trends. He stressed that lenders are committed to assisting customers facing financial difficulties.
Mary-Lou Press, president of NAEA Propertymark, highlighted that proactive lender engagement is starting to show positive effects. She noted the resilience of borrowers despite high living costs and rising interest rates, and described the decline in BTL arrears as particularly encouraging.
A stable landlord sector, she said, is vital to maintaining supply in the private rented market, where demand remains strong. Continued flexibility and early engagement from lenders will be key to helping landlords manage financial pressures while keeping rental homes available.
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