Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Rental arrears fall to lowest level on record
The proportion of UK landlords experiencing rental arrears has dropped to its lowest level since records began, according to new research by Pegasus Insight. The study found that 26% of landlords reported arrears in the past 12 months, down from a peak of 42% in 2020, continuing a six-year downward trend.
Despite this improvement, one in four landlords still faced arrears over the last year. The research also highlights a significant difference between landlords with larger and smaller portfolios. Among landlords with 11 or more properties, 66% experienced arrears, compared to just 18% of those with between one and ten properties.
Voids remain a challenge
Voids—periods when rental properties are unoccupied—remain more common than arrears. The research shows that 41% of landlords experienced a void lasting more than seven days in the past year, with the average void lasting 66 days. Larger portfolio landlords were more likely to be affected, with 68% reporting voids, compared to 35% of smaller portfolio landlords.
Tenant payment trends
Separate research from Pegasus Insight, based on a survey of 3,000 private renters, found that 12% of tenants had missed a rental payment in the previous year. Around 90% of tenants described their rent as manageable or comfortable, though some continue to face difficult choices between housing costs and other essential spending.
These findings are relevant for letting agents and inventory clerks monitoring trends in rental payments and property occupancy. The data suggests that while arrears are decreasing, voids and financial pressures remain important considerations for the UK rental sector.
Source: Property Industry Eye