In the first quarter of 2024, there was a significant increase in home repossessions in the UK, with 870 homeowner-mortgaged properties being repossessed, marking a 36% rise from the previous quarter. Additionally, 600 buy-to-let properties were also repossessed in the same period, showing a 20% increase. This surge has been attributed by UK Finance to the progression of older cases through the court system.

The rise in repossessions corresponds with an increase in the number of mortgages in arrears, exacerbated by the escalating cost of living and higher interest rates. Charles Roe, director of mortgages at UK Finance, noted that despite the increase, the figures for repossessions remain low by historical standards. He emphasized the importance of households contacting their lenders to explore available assistance options, which he affirmed would not affect their credit scores.

UK Finance has stressed that lenders are prioritizing options to keep customers in their homes, viewing repossession as a last resort. Households facing difficulties are encouraged to reach out to their lenders to prevent potential repossessions and manage their financial challenges effectively.