Rent arrears surge to record highs

12:08 AM, 6th November 2026, 6 hours ago

Rent arrears have reached their highest level in three years, with one in five tenants falling behind on payments, according to new data.

Research by Reposit reveals a sharp increase in rent arrears, as the Renters’ Rights Act makes it more difficult for landlords to regain possession of their properties.

The findings come as Ministry of Justice figures reveal that landlord possession claims increased by 6% year-on-year, reaching 23,635 in Q2 2026.

Landlords are becoming more risk averse

Reposit’s data shows that the proportion of tenants in arrears rose from 12% to 18% year-on-year.

This puts 2026 on course to record the highest arrears rate in three years, with an average of 18% across the first three quarters, compared with 15% over the same period in both 2025 and 2024.

Despite the rise in the number of tenants falling behind on rent, the average value of arrears has remained relatively stable at £1,837, representing a modest £13 increase year-on-year.

Ben Grech, CEO of Reposit, said: “Average cash deposits of five weeks’ rent are now £1,258 – that’s more than £550 below the average arrears amount of £1,837. With the Renters’ Rights Act also making it harder for landlords to regain possession of their properties, the financial risk associated with tenant arrears has become a bigger concern than ever before.

“Due to the legislative changes, we’re seeing landlords become increasingly risk-averse, alongside high interest rates and ongoing high inflation.”

Rent prices remain high

Rents continue to rise, with the latest Office for National Statistics (ONS) figures showing that average UK private rents increased by 3.8% to £1,406 per month in the 12 months to September 2026.

Although rental inflation has slowed, monthly rents remain £52 higher than a year ago, adding further pressure to household budgets.

Meanwhile, annual regular wage growth stood at 3.7% in the three months to August 2026, with private sector pay growth at just 3%, as inflation reached 3.5% in September.