New figures reported by Property Industry Eye suggest average rental arrears reached a fresh high in the first quarter of 2026, underlining the pressure still sitting inside parts of the private rented sector.
The report, based on data from Reposit, said average arrears climbed to £2,281 in Q1. The pace of increase appears to have slowed sharply compared with the previous two years, but the headline number is still a useful warning sign for landlords reviewing affordability checks, tenant communication and arrears processes.
This is not a reason for panic or rushed decisions. It is a reason to make sure rent records, contact routines and escalation steps are clear before a missed payment becomes a larger tenancy-management problem.
What the latest arrears figures show
According to the report, average arrears rose to £2,281 during the first quarter of 2026. Reposit said the annual increase was around 2%, which is much slower than the rises seen in the preceding years. The same report said arrears had increased by 27% between Q1 2023 and Q1 2024, followed by a further 23% rise the following year.
That combination matters. A record average arrears figure points to continued financial strain, but the slower growth rate suggests the market may be moving into a more stable phase rather than another sharp deterioration.
The report also noted wider buy-to-let data from UK Finance, which showed the number of buy-to-let mortgages in arrears had fallen quarter-on-quarter by the end of Q4 2025. For landlords, the picture is therefore mixed: stress has not disappeared, but some indicators are no longer worsening at the same speed.
Why landlords should pay attention
Arrears are not just a cash-flow issue. They affect tenancy relationships, repair planning, lender conversations, insurance assumptions and the practical decisions landlords make when a tenancy starts to show signs of strain.
For smaller landlords, one tenancy in arrears can have an immediate effect on the ability to meet mortgage payments, service charges, maintenance costs or tax bills. For larger portfolios, a small rise in arrears across multiple homes can quickly become an administrative problem if records and follow-up processes are inconsistent.
The report also sits against the backdrop of the Renters’ Rights Act now being in place and Section 21 no-fault evictions having ended. That makes early, well-recorded engagement more important. Landlords need to be able to show what has happened, when contact was made, what was agreed and whether the tenant was signposted to appropriate support.
Our recent guide to Renters’ Rights awareness gaps looked at why clear communication matters under the new regime. Landlords may also want to revisit our note on longer possession case times when reviewing how quickly problems are identified and documented.
What landlords can check now
The first check is rent visibility. Landlords should be able to see, without digging through emails or bank statements, whether rent was paid, when it was paid, whether any amount is outstanding and what has been said about it. A simple ledger or property-management system is often more useful than a patchwork of notes.
The second check is the trigger point for contact. Waiting until arrears are already substantial can reduce the options available to both sides. A calm, factual message shortly after a missed payment can establish whether the problem is an admin error, a temporary delay or a more serious affordability issue.
The third check is consistency. If an agent handles day-to-day management, landlords should understand the arrears process being used: when reminders are sent, when phone contact is attempted, what wording is used, and when the landlord is told. If landlords self-manage, the same discipline still applies.
The fourth check is documentation. Keep dated notes of missed payments, tenant contact, repayment proposals and any support information provided. This is not about creating a hostile paper trail. It is about avoiding confusion later if memories differ or if formal steps become necessary.
Affordability pressure cuts both ways
The latest arrears figures are a reminder that tenant finances and landlord finances are connected. Higher household costs can increase the risk of missed rent, while higher borrowing and maintenance costs can reduce a landlord’s room for manoeuvre.
That does not mean every missed payment should be treated in the same way. Some arrears are short-lived and resolved quickly. Others reveal a tenancy that is no longer affordable. The practical task is to identify the difference early, communicate clearly and avoid informal arrangements that neither side can realistically keep.
Landlords should avoid treating the headline number as a prediction for any individual tenancy. It is better used as a prompt to check systems: rent records, arrears triggers, agent instructions, affordability review points and tenant-facing wording.
A practical warning sign, not a forecast
The reported £2,281 average arrears figure is significant, but the slower growth rate also matters. It suggests landlords should stay alert without assuming every tenancy is becoming riskier.
For now, the sensible response is administrative rather than dramatic: keep rent records current, contact tenants early when payments are missed, document agreements, and take professional advice where formal action or complex affordability issues arise.
In a market where many tenants and landlords are still dealing with cost pressure, a clear arrears process is not just a back-office task. It is part of running a stable, compliant and well-managed rental property.
