17.2 C
Manchester
Monday, June 23, 2025
PropertyRecent LandlordBuyer Research Indicates Significant Rises in Landlord Possession Claims and Repossessions

Recent LandlordBuyer Research Indicates Significant Rises in Landlord Possession Claims and Repossessions

LandlordBuyer’s recent study has highlighted significant increases in both landlord possession claims and repossessions in the final quarter of 2023, documenting 23,282 claims and 6,649 repossessions.

Year-over-year comparison from Q4 2022 to Q4 2023:

  • Landlord possession claims escalated from 20,457 to 23,382
  • Orders increased from 16,145 to 18,003
  • Warrants rose from 8,778 to 9,833
  • Repossessions increased from 5,427 to 6,649

The research also noted increases in the sphere of UK mortgage claims and warrants:

  • Mortgage possession claims increased from 3,163 to 4,384
  • Orders went up from 2,482 to 2,702
  • Warrants slightly rose from 2,131 to 2,200
  • Repossessions by county court bailiffs decreased from 735 to 593, down by 19%.

Jason Harris-Cohen, Managing Director at LandlordBuyer, expressed his views on these developments:

“I don’t think any of the LandlordBuyer team was surprised to see the rate of repossessions, warrants and claims increase. Despite the average UK private rent increasing annually by 9%, landlord costs have risen exponentially, which has created a negative disparity. The most worrying element has been mortgage rates. Landlords coming off fixed-rate, buy-to-let mortgages have found new rates are double what they may have fixed into five years ago.

Refinancing in the buy-to-let sector now means very slim margins to work with and even heightened rents can’t make up the shortfall – especially as insurance policies, maintenance and materials have all risen in cost. It’s a simple case of the rent being received doesn’t always fully cover mortgage repayments.

LandlordBuyers’ research is not in isolation. In February this year, UK Finance figures found there was an 11% rise in repossessions of buy-to-let properties. It also found homeowners in mortgage arrears increased by 7%. Inflation that’s still a way off the Government’s target and stubbornly high fuel bills are squeezing everyone’s budget and for some, the mortgage isn’t always the priority.

Will we see the rate of landlord repossessions continue to rise? Potentially. The industry is still focused on the Renters’ Reform Bill and how landlords may have to adapt. We know the Bill includes the application of a Decent Homes Standard in the private rental sector, and finance may have to be found for improvements.

If Labour win the General Election, it’s thought it would pursue a minimum EPC rating of C for privately let properties. Properties that are currently a D or an E would need substantial investment for them to meet a revised requirement, which is another financial pressure.

If landlords’ only way of raising money for improvements is to remortgage, they will potentially overextend themselves and tread a fine line between profit and loss. It only takes an unexpected turn in the economy for rents to fall, tenant demand to decrease, and mortgage rates to rise. We really need the stars to align to see a fall in repossessions.”

News Desk
News Deskhttps://www.businessmanchester.co.uk/
The Business Manchester News Desk team is a collective of experienced journalists and editors dedicated to delivering comprehensive business news and insights from the Manchester area and beyond. With a strong background in finance, technology, property, and innovation, our team ensures that our readers stay well-informed about the latest trends and developments in the business world. Through in-depth reports and insightful analysis, the Business Manchester News Desk team is committed to providing high-quality journalism to its audience.
Latest

Private E-Prescriptions Surge Amid Lengthy NHS Delays

As NHS waiting lists reach record levels, more people in the UK are choosing private healthcare for quicker, more efficient access — especially when...

CTI Digital appoints new CEO to drive innovation and growth

CTI Digital, the North West-based full-service digital agency, has appointed Chris Burgess as its new Chief Executive Officer to lead its growth strategy and...

Halton Business Leader Wins Entrepreneur of the Year at 2025 Awards

Nick Griffiths, Managing Director and Owner of Industrial Cooling Equipment Ltd (ICE), has been awarded Entrepreneur of the Year at the distinguished Halton Business...

Help desks and client portals explained: Choosing the right tool for your customers

The customer is king, so the saying goes. No matter how good the quality of your products or services, it's all for nothing if your...
Subscribe to our newsletter
Business Manchester will use the information you provide on this form to be in touch with you and to provide updates and marketing.
Don't miss

Halton Business Leader Wins Entrepreneur of the Year at 2025 Awards

Nick Griffiths, Managing Director and Owner of Industrial Cooling Equipment Ltd (ICE), has been awarded Entrepreneur of the Year at the distinguished Halton Business...

CTI Digital appoints new CEO to drive innovation and growth

CTI Digital, the North West-based full-service digital agency, has appointed Chris Burgess as its new Chief Executive Officer to lead its growth strategy and...

Help desks and client portals explained: Choosing the right tool for your customers

The customer is king, so the saying goes. No matter how good the quality of your products or services, it's all for nothing if your...

Private E-Prescriptions Surge Amid Lengthy NHS Delays

As NHS waiting lists reach record levels, more people in the UK are choosing private healthcare for quicker, more efficient access — especially when...

More News

The homeowner guide to professional gutter services

Gutters might seem like the most boring part of your house, but they're secretly doing a heroic job every single day. They channel rainwater...

Kaur Sutherland Champions Wellbeing-Focused Conveyancing Practice

As demands on the conveyancing sector continue to rise, law firms are being challenged to maintain quality, stay profitable, and look after the mental...

Zutec Acquires Operance to Enhance Digital Compliance and Handover Solutions in the UK Construction Sector

Zutec, a well-established provider of software solutions for construction and property management across the UK and Ireland, has announced the acquisition of Operance as...