The average tenant in arrears owed almost a fifth more in May than they did in January, according to analysis published by PayProp, a leading rental payment automation platform.

And as we move towards the end of the Government’s furlough scheme at the end of October, landlords should prepare themselves for further increases in rent arrears as redundancies rise, it warns.

Even before the Government’s Job Retention Scheme comes to an end, the proposed changes to the furlough system are likely to put extra pressure on tenants’ finances.

From 1st August, employers will be once again required to make National Insurance and pension payments for furloughed workers, which may well result in a spike of redundancies if bosses are unable to afford these additional costs.

And from 1st September, employers will have to contribute 10% of the wages of furloughed staff, rising to 20% in October before the scheme is wrapped up at the end of October.

In addition, some employees may already be feeling the pinch as commuting costs re-emerge and the option to spend in pubs and restaurants is an option once again.

Neil Cobbold, Chief Sales Officer at PayProp, says: “The job retention scheme has helped to keep people employed and subsequently allowed many tenants to continue paying rent, but as it starts to wind down, letting agents and landlords should prepare for more tenants to fall behind on rent.

“Or, in the worst case scenario, not be able to pay at all.”

Read more about rent arrears.


  1. It is outrageous that Govt is effectively facilitating the financial destruction of LL.
    All LL understand that there are NO guarantees in the PRS.

    All LL ask is to be able to trade as they wish.

    The eviction ban is condemning LL to penury.

    LL simply don’t have bottomless pits of money to subsidise feckless rent defaulting tenants.

    Govt must change the eviction process to allow LL to get rid of rent defaulting tenants very quickly.

    The Court process should be abandoned.
    It is not fit for purpose.

    LL must be given the right to evict a tenant after 2 month’s of rent arrears which is 1 month and one.
    Police assistance should be utilised if the tenant refuses to vacate.

    Govt banning eviction is putting the livelihoods and financial security of LL at great risk.

    It simply isn’t fair that LL are being forced to provide accommodation for free and are prevented by the eviction ban from sourcing new rent paying tenants.

    Surely no fair minded person would deem it acceptable that a private citizen be forced to provide accommodation for a person who has no intention of paying rent on an ongoing basis or to pay any rent arrears.

    The reasons for such non-payment of rent are IRRELEVANT!

    The LL is entitled to try and operate a business.
    But Govt is effectively preventing this.
    It has done nothing to improve the totally dysfunctional eviction process.

    Anyone would think Govt is trying to get rid of LL and using this CV19 crisis as cover to bankrupt those LL!!!??

    LL must be given the chance if they so choose to IMMEDIATELY evict rent defaulting tenants.
    It is irrelevant if this causes rent defaulting tenants to become homeless.
    LL are NOT some sort of quasi social service for feckless tenants.

    Govt must give LL the choice to immediately evict rent defaulting tenants.
    Not all LL will do so.
    They will make their business choices.
    Currently Govt is de facto refusing to allow LL to operate their businesses by preventing LL assets being used as the LL sees fit.

    No other business community is so being prevented from trading because non-paying clients refuse to vacate.

    This manifestly iniquitous situation must be ended IMMEDIATELY to allow LL to take back control of their business……………………….now where have I heard that refrain before!?

    The behaviour of the Govt towards the PRS has been appalling.

    It has effectively co-opted private property to provide FREE accommodation at LL expense.

    Now some LL might be able to subsidise feckless tenants with free accommodation but many LL are not able to do this.

    Govt had shown no regard fir those LL that do not have the resources to subsidise feckless rent defaulting tenants.

    Can not this situation be considered as an attack on the rights of a citizen to their property rights?

    What Govt is effectively presiding over by it’s actions is the potential of constructive bankruptcy for many LL.

    Now this may have occurred anyway in an open market.
    If so then LL accept such risks.

    But not when they aren’t even able to try to trade profitably because the Govt won’t allow them.

    This is simply scandalous a certain business community namely the PRS is effectively being persecuted by Govt.

    We aren’t at Stalin like levels of persecution……………………….yet!!
    But that is what happened to the kulaks.
    They had their private property stolen from them by the State and many of them were KILLED!!

    We are on a very slippery path to effective nationalisation of the PRS at zero cost to the Govt.

    This surely must be seen as completely UNACCEPTABLE by society in general.

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