Fewer renters were in arrears last year, but the average amount they owed jumped from £1,724 to £2,238, according to new research.

Propoly has analysed the latest available government data on rent arrears in England’s PRS and found that during 2024/25, an estimated 210,163 rented households fell into arrears, down from 235,837 in 2023/24.

Landlords dealt with more than £470 million worth of rent arrears in a year (up from £406 million), with the largest number of tenants in arrears found in London and the North East. Renters in London racked up the largest amount of arrears at £109.5m for the year, while the North West also broke the £100m mark with a total of £103.1m.

This was followed by the South East (£61m), West Midlands (£58m), and Yorkshire & Humber (£38m).

Largest

Of the 210,163 English households that fell into arrears in 2024/25, the largest proportion were in London, with the capital accounting for 23% of the national total. The North West placed a close second with 21% of the national total, followed by the South East (13%), West Midlands (12%), and Yorkshire & Humber (8%).

The South West accounted for the smallest number of households with just 3% of England’s total.

Exposed

Group CEO Sim Sekhon says it underlines just how exposed landlords can be when tenant finances come under pressure. “For many landlords, rental income isn’t simply supplementary, it’s essential to covering mortgage repayments, maintenance costs and wider financial commitments,” says Sekhon.

“It’s been a challenging period for household finances, with higher living costs continuing to stretch budgets, so it’s little surprise that a growing number of tenants are struggling to stay on top of their rent. However, while the pressures may be understandable, the financial impact on landlords can be severe and, in some cases, destabilising.”

‍