Ministry of Justice figures reveal that compared to the same quarter in 2024 there were increases in mortgage possession claims from 5,182 to 6,765 (31%), and repossessions by county bailiffs from 769 to 1,092 (42%).

Mortgage possession claims rose across all regions

Landlord possession orders and repossessions have increased – there were increases in orders from 18,140 to 18,713 (3%), and repossessions from 6,938 to 7,308 (5%). All types of landlord claims remained concentrated in London.

However, separate figures for the first quarter released on the same day by UK Finance paint a slightly different picture of the market.

These figures indicate that there were 90,140 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the first quarter of 2025, 2% fewer than in the previous quarter. Within the total, there were 30,700 homeowner mortgages in the lightest arrears band. This was 3% fewer than in the previous quarter.

Responding to the statistics, Generation Rent chief executive Ben Twomey said: “Everyone needs a secure and affordable home, it’s the foundation of our lives. Evictions cause huge emotional and financial distress for renters, while putting pressure on local councils to pick up the pieces. It’s no wonder the number of people trapped living in temporary accommodation, at huge cost to councils, is at record levels.

“It’s right the government will outlaw ‘no fault’ Section 21 evictions through the Renters’ Rights Bill. This change can’t come soon enough.”

Debt charity StepChange public policy manager Adam Butler said:“This is an incredibly uncertain time for mortgage holders. While last week the Bank of England cut the base rate by 0.25%, which could provide some relief for borrowers, it’s unlikely it’ll have an immediate, meaningful impact for those who are struggling to keep up with mortgage payments. Although overall mortgage arrears remain low, the rise in possessions raises concerns that those already struggling may be especially at risk of falling into problem debt.”

“Last year among our clients with a mortgage, we saw average mortgage arrears jump by a staggering 69% – from £6,054 in 2023 to £10,239 in 2024. At the same time, households are being hit with a fresh wave of cost increases, including higher energy bills, council tax, and water bills, further stretching already tight budgets.”

Broadstone senior director risk Richard Pinch pointed out that although mortgage possession claims and orders had increased, these numbers remained below the long-term average. “Meanwhile, the number of people in arrears on their mortgage has again decreased this quarter, suggesting borrowers’ affordability remains stable.

“However, the outlook is uncertain and households face near-term economic headwinds. While GDP figures released (15 May) show that the economy performed better than expected in Q1, many economists suggest it may be short lived as tariffs and the government’s hike in national insurance contributions for employers take hold.”