The proportion of landlords facing rental arrears has reached its lowest recorded level, with 26% experiencing arrears in the last year, new research by Pegasus Insight indicates. This figure marks a continuation of a six-year decline, down from a peak of 42% in 2020.
However, the research highlights a disparity between landlords based on portfolio size. Two-thirds (66%) of landlords managing 11 or more properties reported arrears, compared to 18% of those with one to ten properties.
Voids remain a more widespread issue than arrears, affecting 41% of landlords over the past year, with an average void period of 66 days. Larger landlords, with 11 or more properties, were also more impacted by voids, with 68% experiencing them compared to 35% of smaller portfolio landlords.
Separate findings from Pegasus Insight's 2026 Tenant Trends study, which surveyed 3,000 private renters, found that 12% had missed a rental payment in the previous year. While approximately nine in ten tenants described their rent as manageable or comfortable, Pegasus Insight noted that some renters still face difficult choices between housing costs and other essential spending.
Bethan Cooke, director at Pegasus Insight, stated that the fall in rental arrears to 26% is encouraging, but cautioned against interpreting it as an end to financial pressures. Cooke highlighted that larger portfolio landlords remain exposed to arrears and voids continue to affect many, adding that the position remains finely balanced due to persistent inflationary pressures and higher operating costs for landlords.