Rent arrears fuel one in five tenancy disputes

Rent arrears fuel one in five tenancy disputes

0:01 AM, 11th March 2025, About a month ago

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There has been a big escalation in tenancy disputes with rent arrears now accounting for a fifth of all disagreements, research reveals.

The firm behind the findings also fears that the Renters’ Rights Bill will worsen tenant-landlord relations and spark more disputes.

FCC Paragon has analysed data from England, Wales, Scotland and Northern Ireland, to find there has been a five-year peak in disputes.

Registered tenant disputes

Last year, around 47,405 tenant disagreements were registered within the private rented sector, a 13.6% rise from the previous year and a five-year high.

Of those, 9,784 were about unpaid rent – also a five-year record and an 80.8% annual jump.

Even during the pandemic years, tenancy disputes only reached 14.3% of total disagreements.

After falling to 12.9% in 2021/22, this figure has steadily grown.

Landlord and tenant relationship

The firm’s managing director, Bekki Leaves, said: “The figures suggest that the private rental sector landscape has only become more volatile when it comes to the relationship between landlord and tenant.

“In fact, the total number of disputes lodged has increased consistently over the last four years, whilst the number of these disputes relating to rental arrears have not only climbed since 2021/22 but are also accounting for a far higher proportion of the total.”

The Renters’ Rights Bill

She added: “With the sector undergoing some sizable changes in 2025, not least with the introduction of the Renters’ Rights Bill, the expectation is that this market volatility will only increase further.”

Ms Leaves adds that thorough tenant referencing is crucial to avoid disputes since financially viable renters will prove they can pay the rent.


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