Ten percent more buy-to-let repossessions occur as landlords deal with impending difficult times

In the upcoming months, landlords will be under financial pressure, but there are ways to safeguard your portfolio

Experts are cautioning landlords that "tough times" are ahead due to the increase in buy-to-let (BTL) repossessions.

According to the most recent data from trade association UK Finance, there were 770 BTL mortgage possessions in the final three months of 2025, up 10% from 700 during the same period in 2024.

According to analysis by data firm Moneyfactscompare, landlords who take out a BTL mortgage in mid-April as opposed to the beginning of March face higher repayments of about 1,300 more annually.

BFIA problems nowadays. This is predicated on borrowing £250,000 over 25 years at a rate of 5.45 percent as opposed to 4.66 percent at the beginning of March. Following the start of the Middle East conflict on February 28, mortgage rates have increased due to concerns that inflation may spike.

"Tough times are ahead for landlords as the profitability of buy-to-let has been damaged due to tighter legislation, and rising running costs are squeezing them from all sides," said Rachel Springall, a finance expert at Moneyfactscompare.

"It is concerning to consider that landlords may not be making their mortgage payments on time," she continued.

"It is anticipated that living expenses will increase in the upcoming months, and this will be exacerbated if landlords decide to stop offering cheap fixed rates due to rising mortgage rates. A "

We examine the best option between shares in another piece and a buy-to-let.

Are rentals increasing or decreasing?

In Q4 2025 and the first three months of 2026, monthly rents outside of Greater London remained at 1,370, according to separate data released by the real estate website Rightmove.

Although average rents outside of the capital were still 1.6% higher in Q1 2026 than in Q1 2025, this is the first time since 2017 that there hasn't been an increase during this time.

According to Rightmove, the total number of rental properties in Great Britain increased by 3% from the same period in 2025 due to a decrease in tenant demand and an increase in the supply of available rentals.

The real estate website added that people's budgets and their ability to pay rent have been squeezed by slower wage growth and inflation of more than 2%.

The percentage of rental listings with price reductions in the first three months of 2026 was 26%, which is the highest percentage since 2012.

According to Colleen Babcock, a property specialist at Rightmove, "landlords are needing to position rents correctly for the current market to secure a tenant because there are more homes available for rent and less competition between tenants." A "

Does the buy-to-let market have anything to be optimistic about?

There are some encouraging indicators, as Rightmove reports that there were 6% fewer newly listed rentals in March 2026 than in the same month in 2025.

The number of new BTL loans taken out in the final three months of 2025 increased by 18% over the same period in 2024, according to UK Finance's most recent data.

The average rental yield increased to 7.18 percent in Q4 2025 from 6.99 percent in the same quarter in 2024, according to the trade bodies' data.

Nevertheless, the effects of the Middle East conflict are not reflected in this data.

What is currently possible for landlords?

According to Nick Mendes, mortgage technical manager at broker John Charcol, landlords facing a challenging market can take actions to reduce stress and increase their margins.

Rent increases that are inevitable "tend to land better when there is some visible value alongside it, whether that is improving storage, replacing tired fittings, being quicker on repairs or making the property feel better looked after," according to Mendes.

A tenant who pays a little less may end up being more profitable in the long run, so think twice before requesting the highest possible rent.

Mendes states: "Once void periods, re-letting expenses, and disruption are taken into account, a dependable tenant on a marginally lower figure may still be the better outcome." The "

Landlords can control expenses and borrowing by distributing equity throughout their portfolio. For instance, by remortgaging a house that still has a small loan on it and using the equity to pay off a larger mortgage on another property, or by paying for repairs on another property.

According to Mendes, it's worthwhile to examine expenses in general, such as energy and home insurance, to see if you can cut costs.

In addition, landlords must get ready for the new Renters Rights Act regulations that take effect on May 1.