Rent arrears have risen sharply over the past year, with almost one in five tenancies now recording missed or outstanding payments. Figures from deposit alternative provider Reposit show that 18% of tenancies fell into arrears during the third quarter of 2026, an increase from 12% a year earlier.
This represents a 50% increase in the proportion of tenancies affected. The average amount owed in arrears is £1,837, which is £13 higher than a year ago. Across the first nine months of 2026, an average of 18% of tenancies recorded arrears, compared with 15% during the same period in both 2024 and 2025.
The increase in arrears comes as tenants face higher housing costs. Office for National Statistics figures show average UK private rents reached £1,406 a month in September, an annual increase of 3.8%. Regular wage growth stood at 3.7% in the three months to August, while inflation reached 3.5% in September.
Ministry of Justice figures indicate that landlord possession claims in England and Wales rose by 6% year-on-year, with courts receiving 23,635 claims in the second quarter of 2026. Ben Grech, chief executive of Reposit, noted that average cash deposits of five weeks’ rent are now £1,258, which is £579 below the average arrears amount.