The Number of Abandoned Properties Increases in the UK

Thursday 19 March 2009

The number of abandoned buy-to-let houses in the United Kingdom is increasing because many landlords cannot afford them any longer. The Empty Homes Agency estimates suggest that the amount of abandoned properties rose from 672,924 in 2007 to 697,055 in 2008, an increase which has not been registered for the last 17 years. However, agency's experts believe that these figures might reach 1 million at the end of 2009. The Council of Mortgage Lenders (CML) also confirms that it witnessed a sharp rise in the number of abandoned houses in 2008. For instance, The Chelsea Building Society revealed its statistics, which showed that the number of abandoned properties increased by 100% in 2008. Surprisingly, the head of the society says that the figures are still very low. In 2007, the number of abandoned properties amounted to 25, and in 2008 it reached 50. Another major UK lender mentioned that buy-to-let properties were seriously impacted by the financial crisis because they are not the main place of residence. The CML does not have any statistics on abandoned BTL properties, but it has figures that show the level of repossessions, which demonstrate a sharp increase in the number of BTL mortgage holders who face significant repayment problems. In 2008, a total of 2.32% of UK BTL mortgages, that is, 26,800, were in arrears