Average rent arrears owed by tenants to landlords have climbed by 27% over the past 12 months, new data reveals.

Research by PRS firm Reposit using its own tenancy data shows the average amount owed increased from £1,435 to £1,816 year on year, the highest figure the firm has recorded since it began collecting data in January 2021.

Also, the percentage of renters ending their tenancy with unpaid rent increased to 18% up slightly from 15.3% during the final months of 2023.

The firm says the rise shows how the difficult economy and cost-of-living crisis is bearing down on many tenants and, consequently, their landlords.

But the rate at which rent arrears are increasing is slowing, the data shows, at 0.8% during the first quarter of this year, compared to 8% during 2023 overall.

Pinch

Ben Grech (pictured), CEO of Reposit, points out that many landlords are feeling the pinch as those coming off fixed-rates have seen their monthly mortgage payments soar leading to “acute pressure” on their finances.

This is made worse when landlords face tenants unable to keep up with their payments and deposits that don’t cover any subsequent arrears.

“Five-week cash deposits now average £1,256 and with arrears claims topping £1,800, more and more landlords are at risk of not having enough deposit to cover possible losses,” he adds.

“Arrears also have knock-on implications too for letting agents who have to devote substantial amounts of time to resolving the claims and carrying out all the admin tasks this creates.”