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

Rental Arrears Fall to Six-Year Low, But Void Periods Remain a Concern

Rental arrears among UK landlords have dropped to their lowest level in six years, according to the latest Landlord Trends report from Pegasus Insight. However, void periods continue to present challenges, particularly for landlords with larger portfolios.

The report states that just 26% of landlords experienced rental arrears in the past 12 months, a significant decrease from the 42% peak recorded in 2020. This downward trend has continued despite a slight increase in arrears during the first quarter of this year.

Portfolio Landlords Most Affected

The analysis highlights that landlords with larger portfolios are more likely to be impacted by arrears. Two-thirds of landlords with 11 or more properties reported experiencing arrears in the last year, compared to only 18% of those with between one and ten properties.

Supporting this, Pegasus Insight’s Wave 1 2026 Tenant Trends research, which surveyed 3,000 private renters, found that just 12% of tenants had missed a rental payment in the past year. Additionally, nine in ten tenants described their rent as manageable or comfortable.

Void Periods Remain a Challenge

Despite the fall in arrears, void periods are still affecting many landlords. The report notes that 41% of landlords experienced a void period of more than seven days in the last 12 months, with the average void lasting 66 days. Larger portfolio landlords and those with houses in multiple occupation (HMOs) were more likely to be affected, with 68% of landlords with 11 or more properties reporting voids, compared to 35% of those with smaller portfolios.

These findings are relevant for letting agents and inventory clerks, as they highlight ongoing challenges in managing rental properties, particularly for those overseeing larger portfolios or HMOs.