One in four landlords in rent arrears
“Most renters are continuing to meet their housing costs, but many household budgets remain stretched," explains Bethan Cooke, director of Pegasus Insight.
More than one in four landlords have experienced rent arrears in the past year, new research suggests.
The findings by Pegasus Insight reveal that a total of 26% of landlords have found themselves in this position during the past 12 months.
It comes just five months after the introduction of the Renters’ Rights Act.
Larger portfolios
While alarming, the number is actually part of a sustained six-year decline, according to Pegasus Insight – down from a massive 42% recorded at the peak in 2020.
In addition, it explained that the arrears tend to be concentrated in larger portfolios, with two-thirds of landlords with 11 or more properties experiencing arrears in the past year.
Void periods
However, while arrears have continued to fall, void periods remain a more persistent feature, according to the research.
A total 41% of landlords experienced a void of more than seven days in the past 12 months, with each lasting 66 days on average.
Voids are also markedly more common among larger portfolio landlords and HMO operators, with 68% of those with 11 or more properties affected compared with 35% of those with smaller portfolios.
Most renters are continuing to meet their housing costs, but many household budgets remain stretched.”
Bethan Cooke, director of Pegasus Insight, (pictured), says: “Rental arrears falling to 26% is encouraging, particularly after the financial pressures experienced by tenants and landlords over recent years.
“But it is important not to interpret this as evidence that those pressures have disappeared.
“Larger portfolio landlords remain much more exposed to arrears, while voids continue to affect four in ten landlords.
“Most renters are continuing to meet their housing costs, but many household budgets remain stretched.
“With inflationary pressures persisting and landlords facing higher operating and regulatory costs, the position remains finely balanced.
“The priority now should be to avoid adding further pressures that could ultimately feed through into rents or reduce the supply of homes available to tenants.”
