0:01 AM, 12th May 2025, About 9 months ago 1
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The average amount tenants owe landlords in unpaid rent has rocketed to £2,237 in the first quarter of 2025, a 23% jump from £1,818 the previous year, research reveals.
According to deposit alternative provider Reposit, this figure reflects a 56% increase since Q1 2023, underscoring the financial strain facing the PRS.
High interest rates and persistent inflation have deepened the cost-of-living crisis, with 66% of adults reporting higher expenses between 5 and 30 March 2025, according to ONS data.
These economic challenges have hit both tenants struggling to pay rent and landlords facing growing financial risks.
The firm’s chief executive, Ben Grech, said: “Landlords have been facing sustained cost pressures for some time and as rents have continued to rise, their exposure to tenant arrears has increased.
“The average cash deposit now stands £1,261 which is £976 less than the average arrears value and underscores the inadequacy of traditional deposit schemes which offer just five weeks of protection.”
He added: “Our data also shows that the average charge for damages and cleaning, excluding arrears, reached £1,355 in Q1 2025 – up 18% since last year.
“With the Renters’ Rights Bill requiring landlords to accommodate tenants’ requests for pets, concerns over potential property damage are growing.”
Disputes over unpaid rent are also on the rise an analysis from FCC Paragon reveals, based on data from the deposit scheme TDS.
The figures show that 20% of all lettings disputes last year – 9,784 cases – stemmed from tenants falling behind on payments, an 80% surge from the previous year.
Adding to the complexity is the upcoming Renters’ Rights Bill, which will abolish Section 21 ‘no-fault’ evictions.
The legislation will require tenants to be three months behind on rent, or 13 weeks for weekly or fortnightly payers, before landlords can issue a Section 8 eviction notice.
That’s up from the current two months or eight weeks.
This could make it tougher for landlords to reclaim properties, prompting many to sell up or reduce their portfolio.
While arrears dropped 14% from £2,592 in Q4 2024, probably because of seasonal budget pressures around Christmas, the year-on-year surge signals ongoing challenges for landlords, the firm says.
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Member Since March 2022 - Comments: 354
12:12 PM, 12th May 2025, About 9 months ago
I was quite surprised to not see a “sell your rented property via us” advert at the bottom of this one. Are PRS properties not being snapped up by landlords looking to extend their portfolios or who are keen to enter the market?
There is no doubt being a landlord is a risky business nowadays with all the odds stacked against you and with a £30,000 fine lurking for any mistakes or oversights, with the PRS being held to much higher standards than social housing providers. All this and virtually no prospect of getting rent arrears or damage paid for. Taking a tenant to court if you can ever get there will probably be seen as harassment that effects their mental health and will automatically bias left leaning judges (acting on instructions not to make anybody homeless) against the landlord. Rents might be high but so is the risk.