Figures show a 40% rise in repossessions in just one year as property experts say there is “financial blood on the hands of the government”.
New data published today by the Ministry for Justice showed that in the third quarter of 2025, compared to the same quarter in 2024, repossessions were up 40% at 1,228.
Mortgage possession claims were down 5% at 6,193, mortgage orders for possession were up 20% at 4,840 and warrants issued were up 23% at 3,876.
This comes as unemployment hit 5% this week and GDP rose by just 0.1% – lower than expected – and Chancellor Rachel Reeves readies her pivotal Autumn Budget later this month.
Property experts said the figures reiterated that the economy was in a tough place.
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, was scathing in his response to the figures.
He said: “Much of the data reported today will have been due to the choices our government made in the 2024 Budget that have forced businesses to rein back on employment and expansion plans, as taxation costs ruin their profitability.
“So the working people so often referenced by this government end up losing jobs, starting that awful spiral of financial worry and debt to the point of repossession. Financial blood on the hands of the government.”
Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, said: “A 40% rise in repossessions paints a grim picture of UK plc. It shows we’re trying to manage 2025 mortgage distress with rules built for a different economy.
Claims may be down, but orders and warrants keep rising because people hit crisis point with nothing in the system that actually helps them recover.
“Default interest, penalty rates and shutting borrowers out of better deals only speeds up the fall. And treating repossession as a neat administrative outcome ignores the obvious. People still need a home.
“With social housing full, the rental sector shrinking and bad credit closing every door, repossession becomes a fast track to homelessness.”
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said things could get worse before they get better: “Repossessions up 40% shows the immense pressure households are under due to the new interest rate environment we’re in and continued stubborn inflation.
“With unemployment hitting 5% this week and the economy spluttering at best following this morning’s GDP data, these figures could get worse before they get better.”
Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, advised everyone to check the small print on their mortgages.
He continued: “Repossessions up 40% should make every homeowner check their mortgage paperwork right now. Your lender won’t wait if you fall behind. The courts are churning out possession orders like a factory line: orders up 20%, warrants up 23%, families losing homes up 40%.
“When you hit payment trouble today, lenders push you straight towards court rather than working out solutions. With unemployment at 5% and everything costing more, missing two payments can spiral into losing your home within months.
“The support system treats repossession as admin work while ignoring the obvious: these families need somewhere to live. Social housing is full, rentals are scarce, bad credit blocks everything.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said he worries it will get worse.
He added: “Receivers are sitting on high stock levels that are not moving. We have Budget paralysis coupled with a flatlining economy with growing unemployment and a Chancellor who is leading us into the economic abyss. It can get a lot worse from here.”
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said the data showed a crisis was brewing.
He continued: “This data shows a 20% increase in possession orders and 23% more warrants issued, signalling a deepening crisis. Rachel Reeves is to blame for the Government’s failed economic policy and ‘high debt,’ arguing her fiscal discipline is necessary to reduce borrowing costs.
“The Government would point to low historical totals, blame ‘global pressures,’ and highlight the Mortgage Charter as proof of support for struggling homeowners.
“This data confirms the cost of living crisis is moving into the catastrophic final phase for thousands of families, and that blame sits squarely at the Chancellor’s door.”
Ranald Mitchell, Director at Norwich-based Charwin Mortgages, agreed, adding: “A 40% jump in repossessions is a flashing red warning light for UK plc. This is what economic strain looks like in real time, and this isn’t a blip.
“Behind every statistic is a household that has hit the wall after years of rising costs, patchy wage growth and a lending landscape that’s been stretched to breaking point.
“Possession claims falling while actual repossessions rise shows that the safety nets are thinning and the system is now moving faster towards the sharp end. When orders and warrants are climbing this quickly, it tells you lenders have run out of road and so have borrowers.
“If policymakers want to understand the state of the economy, forget the speeches and look at the court lists. They’re spelling out the story far more honestly than Westminster is.”
Photo by Valentin Salja on Unsplash
