"Lenders can’t get complacent about collections and arrears" - Target Group responds to unemployment & job vacancy data

19 May 2026

Melanie Spencer, growth director of Target Group, part of Tech Mahindra, said:

“I think this data highlights why lenders can’t get complacent about collections and arrears. Yes, there’s been some surprising positive news around recently. The latest PMI showed business activity rising in April. Retail sales rose in March, even when excluding the increased cost of fuel. Living standards are improving at the fastest pace since 2022. And the economy unexpectedly grew during the first full month of the Iran war – suggesting the Middle East conflict has not yet affected growth as much as feared.

“But there’s trouble on the horizon. Not only has the number of properties taken into possession already increased – with a total of 1,250 homeowner mortgaged properties being taken into possession in Q1 2026, the future is looking less rosy. Unemployment rose to 5 per cent in the three months to March with figures showing the first effects of the Middle East war on the jobs market. Demand for workers is set to weaken the longer the conflict goes on. Meanwhile the number of job vacancies has fallen to its lowest level in five years

“Lenders need to get on the front foot to ensure their servicing operations have the right people, processes, and platforms in place to handle the increased demand. They need to future-proof their ability to deliver proper customer outcomes to meet their regulatory obligations. A strong customer experience is also critical – proactive communication and early engagement with borrowers can encourage customers to seek support sooner, helping to reduce arrears and improve long-term outcomes for both lenders and borrowers.”