Spicerhaart Corporate Sales comments on UK Finance Arrears and Possessions - Leasehold driving possessions

12 February 2026

David Miller, divisional director at Spicerhaart Corporate Sales, said:

“The positive momentum continues on arrears with yet another drop in both residential and BTL cases. Given the expected path of both mortgage rates and the bank rate, it’s hoped that this will continue to be the pattern. It’s certainly helped by the proactive work of lenders to intervene early with support. High LTV product choice at an 18-year high may still alarm some with long memories, but we’re in a strong position with economic conditions improving and lenders more than ready to provide proactive support.

“It’s positive to see a drop in possessions on the previous quarter in part due to the December moratorium – albeit still up on the previous year. On the ground, we are seeing increasing challenges around leasehold apartments, with the number coming into possession rising over the last 12 months and now accounting for nearly 50% of the properties we are managing. Severe service charges and doubling ground rent are the tip of the iceberg of issues for lenders, which lead to repossession and then significantly reduce demand or interest from buyers or BTL investors. That’s on top of increasing difficulty dealing with management companies, causing delays and additional expense.

“If we are serious about keeping possessions low and as a last resort for lenders, we need to tackle to leasehold reform head on. As we’ve seen, leasehold is a growing driver behind these decisions and an area where reform is desperately needed for all parties. It’s another reason why lenders need trusted partners with real expertise in asset management – particularly in this complex area of the market.”