Landlords are owed an average of £725 in arrears

A survey has found that nearly 60% of UK landlords have seen a rise in late rent payments due to the current financial situation, and that landlords are each owed an average of £725 in arrears.

The research from digital mortgage lender Molo also reveals that one of the main concerns for landlords in 2024 is the possibility of tenants not being able to pay their rent, with 44% saying this is a major source of stress for them.

The survey showed that landlords face an average of 2.9 late payments per year, but this varies across different regions.

For example, landlords in Yorkshire and the North East have the most late payments, with an average of 3.4 per year.

However, landlords in Greater London are owed the most money, with an average of £806 in arrears – due to the higher rents.

‘Landlords have seen an increase in late rent payments’

The firm’s VP of strategy, Mark Michaelides, said: “Nearly two-thirds of landlords have seen an increase in late rent payments due to the cost-of-living crisis, but this doesn’t always have to lead to extreme measures against tenants.

“As a tenant, it’s important not to ignore the problem.

“I’d advise tenants to communicate promptly, explaining reasons for delays and requesting additional time. Open dialogue can lead to collaborative solutions.”

He added: “Our research found that over half (54%) of landlords have implemented payment plans for tenants facing late rent.

“Additionally, tenants can explore government schemes and seek guidance from organisations like Shelter or Citizens Advice for free support and advice.”

Landlords in the East of England are owed £770

The findings also show that landlords in the East of England are owed £770, and in the East Midlands it is £760, while landlords in the North West are owed the least, with an average of £661 in arrears.

The cost-of-living crisis has also affected the rental market in other ways with 56% of landlords having tenants leave because they could not afford the rent.

Another 55% of landlords say they have lowered the rent to help tenants cope – which rises to 68% for landlords in Greater London and Yorkshire, who have been the most generous in reducing the rent.

Molo says landlords can support their tenants, such as offering flexible payment plans, communicating regularly and being understanding of their situation.

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