Not enough houses to cater for ‘large scale repossessions’, says broker

There is not enough social housing to allow for “widespread repossessions” and the new mortgage-to-rent scheme offers the best way of tackling the huge backlog in mortgage arrears, Davy Stockbrokers has said.

“The revised mortgage-to-rent scheme offers a full debt write-off and security of tenure for borrowers. Banks can reduce their most problematic non-performing loans and also avoid legal costs,” meaning a “win-win solution” for both distressed borrowers and lenders, according to Davy.

Saying there were 33,447 residential accounts in long-term arrears, the broker said there isn’t enough social housing to deal with the prospect of “widespread repossessions”.