The proportion of landlords experiencing rental arrears has fallen to its lowest level on record following a sustained decline from pandemic-era highs.
Latest Landlord Trends research from Pegasus Insight finds 26% of landlords experienced rental arrears during the past 12 months, down substantially from the 42% recorded at the peak in 2020.
The improvement continues a broadly downward six-year trend and follows a slight increase during the first quarter of 2026.
However, the figures reveal a significant divide according to portfolio size, with 66% of landlords owning 11 or more properties experiencing arrears compared with just 18% of those with between one and 10 properties.
TENANTS KEEP PAYING
Separate Pegasus Insight research involving 3,000 private renters supports the improving picture.
Just 12% of tenants report missing a rental payment during the past year, while around nine in 10 describe their rent as either manageable or comfortable.
However, Pegasus Insight says a significant minority of renters are still making difficult choices between meeting their rent and other essential household expenditure.
Bethan Cooke (main picture), Director at Pegasus Insight, says: “Rental arrears falling to 26% is encouraging, particularly after the financial pressures experienced by tenants and landlords over recent years.
“But it is important not to interpret this as evidence that those pressures have disappeared. Larger portfolio landlords remain much more exposed to arrears, while voids continue to affect four in ten landlords.”
VOID PRESSURES
Indeed, voids are now a more common problem than arrears, with 41% of landlords experiencing a void lasting more than seven days during the past year.
Those void periods last an average of 66 days, while 68% of landlords with 11 or more properties are affected compared with 35% of smaller portfolio landlords.
Cooke adds: “With inflationary pressures persisting and landlords facing higher operating and regulatory costs, the position remains finely balanced.
“The priority now should be to avoid adding further pressures that could ultimately feed through into rents or reduce the supply of homes available to tenants.”
