It is estimated that tens of thousands of landlords fell into arrears on their mortgage last year.
Research by specialist lender Octane Capital, using data sourced by UK Finance and the Bank of England, found that the number of landlords falling into arrears on their mortgage grew by 93% in a single year.
In 2023, 41,090 landlords fell into arrears, an average of 10,273 per quarter.
Approximately 13,570 landlords fell into arrears in the final quarter of last year, equating to 0.7% of all BTL loans.
This marked a 93% surge in BTL arrears compared to Q1 2023, having increased consistently every quarter.
“Interest rates remain at their highest since 2008, and it’s clear that while we haven’t seen the base rate increase since August of last year, both landlords and homeowners alike are struggling to keep pace with the increased cost of their mortgage,” said Jonathan Samuels, CEO at Octane Capital.
“While homeowners are more likely to fall behind on their payments, the sharp increase in landlord arrears is a worrying sign for the rental sector.
“There’s already a desperate shortage of rental homes available to serve the huge demand from tenants.
“An increase in BTL arrears suggests that this issue could be set to intensify as landlords offload their portfolios to pay their debts, or worse, see them repossessed.”
