Just 11,830 buy-to-let mortgages were in arrears in the first quarter of 2025, figures from UK Finance show.
This represents an annual reduction of 6%, while it means just 0.61% of buy-to-let mortgages are in arrears.
David Miller, divisional director at Spicerhaart Corporate Sales, said: “It is really positive to see mortgage arrears continue to fall across both residential and buy-to-let.
“IWhile possessions do creep up – likely pointing to greater difficulties in higher arrears band – they still remain at historic lows and demonstrate the good work of lenders.
“In recent weeks and months, we’ve certainly seen positive changes with rate reductions across the market and the recent cut to the base rate, which is likely not to be the last. This will certainly help with the overall arrears picture moving forward – although we cannot underestimate the prospect of sticky inflation and potential pressures around the labour market.”
There were 2,030 repossessions of mortgaged homes and rental properties in Q1 2025, a slight increase on the previous quarter. This figure remains 85% lower than the 13,200 recorded in the same quarter of 2009.
Toby Leek, president of NAEA Propertymark, said: “It’s extremely positive to see to see mortgage arrears drop to their lowest level since 2009. There has been much progress within the sector to help ensure the overall lending criteria is more robust and offers consumers a higher degree of safety regarding their affordability.
“However, it is concerning to see repossessions witness an increase within the first quarter of 2025, as it demonstrates there is still an aftershock regarding the recent surge in the cost of living and support available to those who may need genuine help in the short to medium term.”
Early-stage arrears also fell during the quarter, indicating any future rise in arrears may be limited.