Buy-To-Let repossessions fall

Figures released by the Council of Mortgage Lenders (CHL) last week reports that repossessions across the mortgage buy to letindustry had fallen to their lowest level since the financial crisis.

This includes the buy-to-let sector, where arrears and repossessions have also dropped. CHL said that quicker turnaround times when dealing with maintenance and lettings work had contributed to the fall in arrears levels.

Figures released by the Ministry of Justice agree with the CHL findings. They reported that the number of possession claims, recorded when a claimant begins the legal process to repossess a property, were also down. It said 15,050 mortgage possession claims were issued in the second quarter of 2012 less than half the level seen during 2008.

Specialist lender CHL Mortgages, who deal in buy-to-let mortgages has also confirmed a fall in arrears levels across its buy-to-let mortgage book. The lender said that at the end of October 2012 only 572 (1.36%) of its 42,000 active mortgage accounts were in arrears of three months or more.

It means that with healthy rental yields and high consumer demand private landlords can hope to enjoy a period of relative stability with their property portfolio. Data from CHL shows that in the first nine months of 2012 £11.8bn worth of buy-to-let mortgages were agreed, a 19% rise on the £9.9bn in the same period of 2011.

No comments yet.

Leave a Reply