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The second quarter of this year has injected life back into the property market, which is great news for investors and the lending market. It has been reported that buy-to-let mortgage arrears have continued to decline, mirroring the recent reduction again in the Bank of England base rate.
It really reflects improved affordability again for property investors – so if you are thinking of investing, start looking for those properties – or get in touch with our team about some of our asset backed investment deals!
Across the UK firstly as a whole, the number of BTL mortgages in arrears of 2.5% or more of the outstanding balance fell by 5% in quarter 2, down to 11,270 mortgages in total. And this has been the 5th decline of this figure. The proportion of BTL mortgages in arrears now only stands at 0.58% a considerable difference.
2.5%-5% arrears band: 4,100 mortgages (drop of 6%))
5%-7.5% arrears band: 2,070 mortgages (drop of 8%)
7.5%-10% arrears band: 1,450 mortgages (drop of 5%)
Over 10% arrears: 3,650 mortgages (drop of 1%)
Repossessions of property still remain a concern, but this has dropped by 2% in total. And as more products become available from lenders due to the recent interest rate changes, then the likelihood of repossessions becomes less.
Scotland has followed the UK trend in arrears and shown an improvement in the share of outstanding balances in arrears, consistent with the overall statistics for the UK. New listing of homes in Scotland has risen by 12% during 2024 and we are on track to continue at this level for 2025.
Rental yields are averaging a minimum of 5% in Scotland in popular areas and there appears to be around a 15% drop in private rental stock, which means less competition for current or new landlords. Lenders like ‘West One’ are also now offering tailored products to help landlords which is helping offset high entry costs to entering the property market as a landlord.
According to ESPC (Edinburgh Solicitors Property Centre) property sales volume increased by 0.5% during April-June 2025, compared to 2024, and completions were up in Scotland by 1% compared to Q2 of 2024.
All in all, it is looking like the market is fighting back and ready for investors to get going again!
Get in touch with our friendly team to discuss everything property!
info@murraypropertyholdings.co.uk
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Email: info@murraypropertyholdings.co.uk
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