One in four landlords in rent arrears
Summary
New research from Pegasus Insight suggests that 26% of landlords experienced rent arrears in the past year, a figure that has fallen from its 2020 peak but remains significant. The report also highlights persistent void periods, especially among larger portfolios and HMO operators, against a backdrop of ongoing inflationary and regulatory pressures.
Why it matters
These trends affect landlord cash flow, portfolio performance and the stability of the private rented sector, all of which can influence surveyors’ advice on investment risk and asset management. Surveyors involved in valuation, lending or landlord advisory work should note the concentration of arrears and voids in larger portfolios.
Key points
- 26% of landlords reported rent arrears in the past 12 months.
- Arrears have declined from a 2020 peak of 42%, but remain concentrated in larger portfolios.
- 41% of landlords experienced voids of more than seven days, averaging 66 days.
- Void periods are more common among landlords with 11 or more properties and HMO operators.
- The article links current pressures to inflation and higher operating and regulatory costs.
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