Housing market shows signs of stability as rental arrears drop

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Housing market shows signs of stability as rental arrears drop

Rental arrears are at their lowest level since 2022 as rent prices remain largely unchanged, according to a new report.

Propertymark’s Housing Insight report reveals that affordability is improving in parts of the rental market as tenant demand has eased.

Propertymark member agents also report that, while rental prices are fluctuating in some areas, there is a degree of stability, with 52% of agents saying rents have generally remained static.

Growing stability and resilience within the rental sector

According to the report, the magnitude of member agents reporting problems with arrears positively decreased to 1.7%, the lowest since 2022.

More than half of Propertymark agents (52%) reported rents have remained generally static and 30% have reported an overall fall.

The report also reveals a dip in tenant demand with the average number of registrations per member branch dropped significantly to an average of 61.

Nathan Emerson, chief executive of Propertymark, said the fall in rental arrears shows the rental market is strengthening.

He said: “On the lettings side, it is particularly positive to see arrears reported at their lowest level since October 2022. This signals growing stability and resilience within the rental sector, even against a backdrop of long-term supply challenges.

“With more than half of agents reporting static rents and nearly a third observing modest declines, the data suggests the rental market may be beginning to find a more sustainable balance. Overall, these trends point to a market that is settling, strengthening, and gradually moving into a more predictable rhythm, which is welcome news for agents, landlords, and consumers alike.”

Overall direction is encouraging

Phil Spencer, founder of Move iQ, said the rental arrears drop is welcome news.

He said: “For renters, the reduction in arrears and the fact that most agents are seeing rents remain static, or even fall, will be particularly welcome.

“After several years of rapid increases, this shift offers a bit of breathing space and suggests affordability is improving in parts of the market.

“While challenges remain, the overall direction is encouraging. Consumers navigating the market today can do so with a little more confidence, knowing that conditions are stabilising and that opportunities exist for those prepared to act.”

Elsewhere, the report shows that in the residential sales market, the average number of sales agreed per member branch saw a slight increase in October 2025, reaching 7.8, while stock levels also rose, with an average of 45 properties for sale at each branch.

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