Write-off data on the UK residential property market

Read the UK residential property loss data for firms subject to CRD IV.

The Capital Requirements Regulation (CRR) states that in order for a fully and completely secured residential real estate exposure to be subject to a 35% risk weight, the performance of the loan must not be dependent on the underlying property. An exception to this is permitted where competent authorities publish data showing a well-developed and long-established residential property market. This is particularly relevant to buy-to-let mortgages.

The UK has a well-developed and long-established residential property market. Pending the collection of data reflecting annual loss rates on UK residential property exposures on a standardised basis through Common Reporting (COREP), we consider the following loss rates to be an appropriate proxy for the purposes of articles 125(3) and 199(3) of the CRR. So, until we publish further analysis, FCA-authorised firms may take advantage of the derogations from point (b) of paragraph 2 of Article 125, and from point (b) of paragraph 2 of Article 199, of the CRR.​

Firms authorised by the Prudential Regulation Authority (PRA) should see PRA publications for this information, in particular: 

We have used the same data to calculate these proxies as the PRA (Bank of England dataset RPATFHD and RPATBVX).

Loss rates by year

Year Write-off rate
1995 0.12%

1996

0.11%
1997 0.15%
1998 0.08%
1999 0.07%
2000 0.04%
2001 0.03%
2002 0.02%
2003 0.02%
2004 0.00% (due to rounding)
2005 0.01%
2006 0.03%
2007 0.03%
2008 0.07%
2009 0.13%
2010 0.08%
2011 0.06%
2012 0.05%