Spicerhaart Corporate Sales comments on UK Finance Arrears and Possessions

14 May 2026

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

“The good work of lenders is on show once again as we see arrears cases fall across all bands in Q1. While this is clearly great news, we do have to address the elephant in the room. The landscape is changing rapidly with the ongoing Iran conflict derailing the future path of interest rates and inflation.

“In recent months, we have seen the number of instructions coming to us has increased – particularly for support with assisted voluntary sales. With no signs of an end to this conflict and inflation likely to climb further, lenders must keep that laser focus on forbearance, arrears management and proactive intervention and support.

“We were pleased to see leasehold reform outlined in the King’s Speech this week and it can’t come soon enough – especially as leasehold properties now make up 54% of the properties we manage for clients. Leasehold remains a primary driver behind why properties are coming into possession – whether it’s surging service charges, doubling ground rent or increasing difficulties with management companies. This is eroding demand and interest, as well as significantly affecting resale values. It’s an area where urgent action from the Government is needed, not further delays caused by yet another Prime Minister merry-go-round.

“Given the current complexities, we are seeing more lenders looking to outsource to trusted partners with real expertise in asset management – helping them to understand the value and any potential risk within their mortgage book, act early and ensure good outcomes for borrowers. On the ground, it is great to see lenders continue to work proactively and in the best interests of their customers.”