11th
Apr 2024
PRS landlord repossessions in Q1 2024 has seen a massive increase when compared to the same quarter in 2023.
The latest report from a lenders’ industry body shows there were 500 landlord repossessions in Q4 2023 which was 56.3 per cent higher than Q4 2022.
The report also highlights that by the end of Q4 2023 there were around 13,570 BTL mortgages falling behind in payments which was greater than 2.5 per cent of the outstanding balance; when compared with Q4 in 2022 this was 123.9 per cent higher.
There are other stats in the report on the sector which include:
· The total of new UK BTL lending in Q4 2023 was £6.3 billion, a fall of 55.4 per cent from the Q4 2022 value.
· UK‘s average gross BTL rental yield in Q4 2023 was 6.74 per cent, whereas in the same period in 2022 it stood at 5.85 per cent
· The average interest rate across all new UK BTL loans increased to 5.7 per cent in Q4 2023, whereas in 2022 it was 3.67 per cent, resulting in the average buy-to-let interest cover ratio (ICR) for the UK in Q4 2023 dropping down to 180 per cent, whereas in Q4 2022 it was 238 per cent.
· The number of outstanding BTL fixed rate mortgages in Q4 2023 was 1.37 million which was 1.7 per cent per cent higher than Q4 2022. However the number of outstanding variable rate loans outstanding fell by 12.7 per cent to 0.62 million.
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