Rent arrears shoot up since implementation of Renters Rights Act
Summary
New data from Reposit suggests rent arrears have risen sharply in 2026, with nearly one in five tenancies falling into arrears in Q3 and the year-to-date average reaching 18%. The article links the increase to ongoing cost pressures, slower wage growth, and the private rented sector’s adjustment to the Renters Rights Act, including the abolition of Section 21 in England.
Why it matters
For residential property surveyors involved in valuation, lettings, or landlord advice, rising arrears and possession pressures can affect rental income assumptions and investment risk. The regulatory changes may also influence landlord behaviour, tenancy stability, and the wider private rented sector market.
Key points
- Rent arrears rose from 12% to 18% year-on-year in Q3 2026.
- Average arrears value stayed broadly flat at £1,837.
- Average UK private rent increased 3.8% year-on-year to £1,406 per month.
- Landlord possession claims in England and Wales rose 6% year-on-year in Q2 2026.
- The article cites the Renters Rights Act and abolition of Section 21 as key market changes.
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