Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

One in Four UK Landlords Report Rent Arrears in Past Year

More than one in four UK landlords have experienced rent arrears in the past 12 months, according to new research by Pegasus Insight. The study found that 26% of landlords reported arrears, with larger portfolio landlords most affected.

The research comes five months after the introduction of the Renters’ Rights Act. While the current figure is significant, Pegasus Insight notes that it represents a sustained six-year decline from a peak of 42% in 2020.

Larger Portfolios and HMOs Most Affected

The findings highlight that rent arrears are more prevalent among landlords with larger portfolios. Two-thirds of landlords with 11 or more properties reported experiencing arrears in the past year. Void periods are also more common for these landlords and for HMO (House in Multiple Occupation) operators. The research states that 68% of landlords with 11 or more properties experienced voids, compared to 35% of those with smaller portfolios.

Persistent Void Periods

Void periods remain a persistent issue in the rental market. The research found that 41% of landlords experienced a void period of more than seven days in the past year, with each void lasting an average of 66 days.

Pegasus Insight’s director, Bethan Cooke, commented that while the fall in rental arrears is encouraging, larger portfolio landlords remain more exposed to arrears and voids. The research also notes that most renters are continuing to meet their housing costs, but many household budgets remain stretched.