UK rents dip in February – led by London falls
2 months ago | 2 comments
Rent arrears and claim values fall despite rise in cases
12:01 AM, 5th March 2026, 1 month ago
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The average value of rent arrears fell to £1,980 in 2025, down from £2,143 in 2024, according to new data from Reposit.
It also says that claim values also declined over the same period, dropping from £1,207 to £1,178, a reduction of just over 2%.
However, while the monetary value of arrears and claims fell, the frequency of cases increased across the year.
Also, more tenants fell into financial difficulty last year, but the debt recorded in each case was lower than in 2024.
Arrears value falls
The ‘no deposit’ platform’s chief executive, Ben Grech, said: “It’s encouraging to see the average value of arrears and claims falling.
“However, the marginal rise in case volumes shows that financial pressure across the sector remains.
“At the same time, the Renters’ Rights Act is creating a more complex operating environment for landlords, fundamentally changing how arrears and repossessions are managed.”
He added: “With the abolition of Section 21, many landlords are understandably becoming more cautious in their approach to rent arrears.”
Tenant deposit not enough
Mr Grech went on to say that the average cash deposit is now £1,296, which is £629 below the average arrears value.
That shortfall, he warns, highlights the limitations of traditional five-week deposits which don’t provide adequate protection when arrears escalate.
He said: “As a result, we’re seeing growing demand for deposit solutions that offer greater financial protection for landlords and are FCA-regulated, while also reducing compliance risk for agents in light of the new regulations.”
UK rents rose
The firm is pointing to Office for National Statistics (ONS) figures which show average UK monthly rents rose by 4% to £1,368 in the 12 months to December 2025.
That compares with annual growth of 4.4% in the year to November.
UK Finance also reported 9,520 buy to let mortgages were in arrears of 2.5% or more in Q4 2025, 9% fewer than in the previous quarter.
During the same period, 770 BTL properties were taken into possession, down 14%.
Tags:
Buy-to-let arrears, landlord deposits, rent arrears 2025, Renters’ Rights Act, Section 21 Abolition, tenancy claims data, UK rental market
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Member Since March 2026 - Comments: 4
8:49 AM, 5th March 2026, About 1 month ago
The combination of rising case volumes with Section 21 going… Right now if a tenant hits arrears you can fall back on a no-fault notice as a last resort. After May that’s gone and you’re relying entirely on Section 8 Ground 8, which needs the tenant to be at least two months behind at both the notice date and the hearing date.
That means your paper trail matters more than ever. If you haven’t been sending formal arrears letters with dates, amounts, and deadlines clearly documented, you’ll struggle to evidence your case in court. A lot of landlords I know just send a text or a WhatsApp when rent is late. That won’t cut it under the new system.
Worth getting your arrears process tightened up before May. Have a proper first warning letter ready to go, then a formal demand if it continues. Those two documents are what a judge will want to see.
Member Since September 2018 - Comments: 3514 - Articles: 5
11:57 AM, 5th March 2026, About 1 month ago
all well and good…but 24 hours before the court hearing the tenant pays up just £1 so it falls below the THREE month min total arrears level and your case falls through the floor.
Member Since September 2018 - Comments: 3514 - Articles: 5
12:04 PM, 5th March 2026, About 1 month ago
given the restricted nature of the new S8 grounds, just using the ground for rent arrears alone is stupid. It would be better to list the selling ground but also ensure rent arrears are also listed on the form. There is nothing stopping the landlord stating the ultimate reason why the selling ground is being used is directly because there is no guarantee at the possession order stage, the tenant will still be in arrears, precisely because they can pull the ‘pay at the last min trick’ to stop a possession order being made.