Rental arrears claims have climbed by 50% in the year to December, highlighting how stretched tenants have become, data released by Reposit has revealed.
There was also a significant uptick in the value of claims, rising from £1,344 in October to £2,108 in November, before maintaining high levels at £1,954 in December.
Ben Grech, chief executive of Reposit, said: “The increase in rent arrears is obviously reflective of tough times for tenants, but this naturally has a knock-on effect for landlords, who are facing their own challenges with Renters Reform and higher mortgage rates.”
Grech added: “It naturally increases the strain on letting agents. With increased arrears comes increased paperwork, disputes, and delays.”
This spike in rent arrears corresponds with broader economic trends, including increases observed in defaults on mortgages and credit cards during the same period.
According to Rightmove’s trend tracker, tenant affordability is now at a critical juncture, with 23% of rental properties experiencing a reduction in advertised rent.
