The UK’s private rented sector has faced significant challenges in recent years, with economic pressures driving many Landlords to the brink of financial crisis. A combination of rising interest rates, inflationary pressures, changes in tax regimes, and legislative requirements have lead to an increase in Landlords being repossessed by mortgage lenders.

For Landlords operating on minimal profit margins, additional costs have become unsustainable. Even those with fixed-rate mortgages are not immune, as they faced higher rates when deals come to an end. The inability to refinance at affordable rates has left some Landlords with no choice but to sell their properties or face repossession.

For some, the cost of compliance has outweighed the potential returns, leading to decisions to exit the market altogether or default on mortgages due to financial strain.

The numbers of landlord repossession actions for all court stages have increased compared to the same quarter of last year (July to September 2023).