The number of homeowner properties being repossessed in the second quarter of this year jumped by 47% compared with the same period a year earlier, according to figures from a banking and finance industry body.
The figure was also 10% higher compared with the previous three months.
But UK Finance, which released the figures, said home repossessions remain significantly lower than long-term averages.
Its figures show 1,340 homeowner-mortgaged properties were repossessed in the second quarter of 2025.
Meanwhile, 790 buy-to-let mortgaged properties were repossessed in the second quarter, which was 2% lower than in the previous three months but 11% higher compared with a year earlier.
In the aftermath of the 2008 financial crisis, a peak of 13,200 properties were repossessed in the first quarter of 2009. This included 12,000 owner-occupied and 1,200 buy-to-let properties.
Charles Roe, director of mortgages at UK Finance, said: “Arrears are continuing to fall across both homeowner and buy-to-let mortgages, reflecting resilience in the market.
“The proportion of mortgages in arrears also remains below long-term averages, even amid the current economic uncertainty. Lenders remain committed to helping customers manage their payments, and we urge anyone concerned to contact their lender early.
“Support is always available and exploring available options with your lender will not affect your credit score.”
In the second quarter of 2025, 87,380 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance. This was a 3% decrease compared with the previous quarter and 9% lower than a year earlier.
Within this total, 29,840 homeowner mortgages were in the lightest arrears band – between 2.5% and 5% of the outstanding balance. This was down by 3% compared with the previous quarter and a 13% fall compared with a year earlier.
The number of buy-to-let mortgages in arrears fell by 5% on a quarterly basis and by 17% annually, to 11,270 in the second quarter of this year.
Of these, 4,100 buy-to-let mortgages were in the lightest arrears band, down 6% compared with the first quarter and a 28% fall compared with a year earlier.
The overall proportion of mortgages in arrears remains low, at 1.00% of homeowner mortgages and 0.58% of buy-to-let mortgages, UK Finance said.
It added that lenders will always seek to ensure customers remain in their homes and possession is only ever a last resort after other options have been explored with the customer.
