Recent data shows a 27% rate of arrears among the buy-to-let sector, with 21% of accounts in arrears for more than 90 days.
Spokesperson for the party, Michael McGrath, said: "The priority in relation to mortgage arrears had to initially deal with the owner occupied sector. However this should not preclude the government from taking decisive action to deal with the problems in the buy-to-let sector. The failure to get to grips with the arrears problem in the buy-to-let sector is have a destabilising effect on the overall housing market.
"76% of arrears cases have not had a restructuring arrangement, either temporary or permanent, put in place. In fact the figures in relation to permanent restructuring arrangements show a negligible rate of progress.
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"Between June and July of this year there was just one additional permanent restructuring plan put in place in respect of buy to let mortgages. The banks' strategy appears to be to rely on continuing increases in house prices and rents to solve the problem for them. This ignores the fundamentally weak nature of the sector and the need to put in place sustainable long term solutions which are both reasonable for the borrower and the banks.
"In many cases properties were purchased with an initial interest-only period. A Central Bank report has indicated a significant number of interest-only mortgages are due to revert to principal-and-interest repayments in the next two years. The resulting higher repayments for these borrowers could lead to an increase in mortgage arrears.
"We need to act now to prevent another wave of buy to let properties falling into arrears as borrowers begin to make capital repayments. The use of split mortgages as a long term solution has been very limited with just 712 completed to date. By contrast, the far less effective measure of capitalising arrears has been used in seven times as many restructuring cases.
"The banks need to actively identify those cases that are in danger of falling into arrears and work with the customer to put in place solutions that are fair to both parties."
(CD/JP)
