Thames Tap partner Vail Williams has dived into statistics on receiverships and sees a downward direction of travel. 

The latest half-year statistics from nara – the trade association for fixed charge receivers – reveal a clear trend: LPA (Law of Property Act) receivership appointments are rising sharply, as economic pressures continue to impact both corporate borrowers and private property owners.

Receivership trends: four years in context

Despite quarterly distortions in 2024 due to registration delays, the overall picture is unambiguous.

Over the last four years, the volume of fixed charge receivership appointments has increased steadily – and that trajectory has accelerated in 2025.

The figures for the first half of 2025 show:

  • A 74 per cent increase in Q1 & Q2 2025 vs Q3 & Q4 2024
  • A 67 per cent increase in Q1 & Q2 2025 vs Q1 & Q2 2024

While July 2025 did not bring the anticipated surge ahead of the Summer recess, the numbers remain double those of July 2023 and three times those of July 2022, highlighting a sustained rise in distressed property appointments.

Russell Miller, registered LPA receiver and partner at Vail Williams (pictured), said:  “Although current levels of distress remain well below those seen during the 2008 financial crisis, the combination of higher interest rates, increased regulatory costs around property management and mounting affordability pressures in the rental market are clearly putting a greater strain on borrowers.

“This has led to a rise in mortgage defaults and, in some cases, growing disillusionment with the risks of property investment – particularly in smaller-scale buy-to-let portfolios.”

Regional shifts in receivership appointments

A notable feature of the data published by nara, is the changing regional profile of LPA receivership activity:

  • Yorkshire & the Humber: 25 per cent of all cases (up from seven per cent in H1 2024)
  • South East: 19 per cent (down from 27 per cent)
  • London: 16 per cent (down from 18 per cent)
  • North West: 12 per cent (down from 15 per cent)

The jump in Yorkshire reflects the appointment of receivers over a large, secured portfolio – a reminder that distressed loan enforcement can often come in concentrated waves.

Property type breakdown in receivership cases

Since January 2025, nara has provided more granular analysis of the property types entering receivership. Unsurprisingly, residential property dominates:

  • Residential: 65 per cent of all receivership appointments
  • Land / incomplete developments: 14 per cent
  • Retail: five per cent
  • Hospitality: four per cent

The rising presence of hospitality assets in receivership – including hotels, guest houses, restaurants, cafés, and bars – is concerning.

With margins under strain from high costs, including business rates, and reduced consumer spend, this sector is likely to face further insolvency pressures in the months ahead.

What effect will this have on the residential market?

The impact of more residential appointments is that there will be less property available in the rental market, which puts more pressure on the supply and demand imbalance for the PRS (private rented sector).

Conversely, this releases more houses for owner occupiers, but this is unlikely to be enough to make a material dent in the wider political ambitions for housing supply growth, with cost remaining a limiting factor for potential homeowners.

Discover more in our latest Residential Market Report.

Market outlook: rising risk for borrowers and lenders

According to nara, members continue to report unease across the SME sector, where tighter margins, high input costs, and ongoing uncertainty about economic policy are compounding risks.

The housing market remains uneven, with increasing stock coming to market and regional variations in pricing.

Russell added: “The challenge at a regional level, is that we may see more supply in the areas where demand is weaker, whereas new supply of housing in the South East is not keeping up with demand and targets. This means we can expect a further widening of the gap between regional house prices.”

Although the recent interest rate cut may ease conditions, inflation remains well above the Bank of England’s two per cent target, leaving questions over whether growth and confidence can return in the short term.

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