Rent arrears and claim values fall despite rise in cases

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Rent arrears and claim values fall despite rise in cases

The average value of rent arrears fell to £1,980 in 2025, down from £2,143 in 2024, according to new data from Reposit.

It also says that claim values also declined over the same period, dropping from £1,207 to £1,178, a reduction of just over 2%.

However, while the monetary value of arrears and claims fell, the frequency of cases increased across the year.

Also, more tenants fell into financial difficulty last year, but the debt recorded in each case was lower than in 2024.

Arrears value falls

The ‘no deposit’ platform’s chief executive, Ben Grech, said: “It’s encouraging to see the average value of arrears and claims falling.

“However, the marginal rise in case volumes shows that financial pressure across the sector remains.

“At the same time, the Renters’ Rights Act is creating a more complex operating environment for landlords, fundamentally changing how arrears and repossessions are managed.”

He added: “With the abolition of Section 21, many landlords are understandably becoming more cautious in their approach to rent arrears.”

Tenant deposit not enough

Mr Grech went on to say that the average cash deposit is now £1,296, which is £629 below the average arrears value.

That shortfall, he warns, highlights the limitations of traditional five-week deposits which don’t provide adequate protection when arrears escalate.

He said: “As a result, we’re seeing growing demand for deposit solutions that offer greater financial protection for landlords and are FCA-regulated, while also reducing compliance risk for agents in light of the new regulations.”

UK rents rose

The firm is pointing to Office for National Statistics (ONS) figures which show average UK monthly rents rose by 4% to £1,368 in the 12 months to December 2025.

That compares with annual growth of 4.4% in the year to November.

UK Finance also reported 9,520 buy to let mortgages were in arrears of 2.5% or more in Q4 2025, 9% fewer than in the previous quarter.

During the same period, 770 BTL properties were taken into possession, down 14%.

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