Nearly one in five tenancies fell into rent arrears in the third quarter of 2026, according to new data from Reposit.

The figures reveal a sharp rise in arrears cases, climbing from 12% to 18% year-on-year. This puts 2026 on course for 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. The value of arrears, however, has remained relatively static at £1,837, a marginal rise of just £13 year-on-year.

While rental price growth has slowed considerably compared with last year, rents continue to climb, according to ONS figures showing average UK monthly private rent increased by 3.8% to £1,406 in the 12 months to September. Despite slowing rental inflation, rents remain £52 higher than a year ago, while annual regular wage growth stood at 3.7% in the three months to August.

Possession

Ministry of Justice figures show landlord possession claims in England and Wales rose by 6% year-on-year to 23,635 in Q2 2026, highlighting continued challenges across the rental market.

Ben Grech, CEO of Reposit, says average cash deposits of five weeks’ rent are now £1,258 -  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,” adds Grech.

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

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