Private landlords dealt with more than £470 million in rent arrears during 2024/25, a sharp increase from £406 million the previous year, according to new analysis of government data by property finance platform Propoly.
Fewer households in arrears but higher debts
The research found that while the number of households falling into arrears dropped from 235,837 to 210,163, the average amount owed rose significantly – from £1,724 to £2,238 per household, a 30 percent increase.
London accounted for the largest share of arrears, with renters in the capital owing a combined £109.5 million. The North West followed closely with £103.1 million in total arrears.
Other regions with significant arrears included:
- South East: £61 million
- West Midlands: £58 million
- Yorkshire and Humber: £38 million
The South West recorded the smallest proportion, accounting for just three percent of England’s total.
London and North West hardest hit
Of the 210,163 English households that fell into arrears, 23 percent were in London, with the capital maintaining its position as the area with the highest concentration of arrears cases. The North West placed second with 21 percent, followed by the South East at 13 percent and the West Midlands at 12 percent.
The figures show that while some councils are offering guaranteed rent schemes to attract landlords, the financial pressure on tenants continues to create cash flow challenges for property owners.
Industry reaction
Sim Sekhon, Group CEO of Propoly, said the data highlights how exposed landlords can be when tenant finances come under pressure.
“For many landlords, rental income isn’t simply supplementary – it’s essential to covering mortgage repayments, maintenance costs and wider financial commitments,” Sekhon said.
“It’s been a challenging period for household finances, with higher living costs continuing to stretch budgets, so it’s little surprise that a growing number of tenants are struggling to stay on top of their rent. However, while the pressures may be understandable, the financial impact on landlords can be severe and, in some cases, destabilising.”
The findings come as landlords face additional compliance requirements under the Renters’ Rights Act, including stricter rules around possession proceedings for rent arrears. With the mandatory two-month arrears threshold for Ground 8 possession unchanged but court delays now averaging eight months, landlords face significantly longer exposure periods when tenants stop paying.
What this means for landlords
- Higher individual risk: While fewer tenants are defaulting, those who do now owe 30% more on average – a single bad tenant can now cost £2,238+ before you even start court proceedings.
- Regional hotspots: If you own in London or the North West, you’re in the highest-risk areas – consider enhanced referencing and rent guarantee products.
- Referencing is critical: With arrears harder to recover under the RRA framework, thorough tenant vetting is your first line of defence.
- Bottom line: Rent guarantee insurance has shifted from “nice to have” to essential – especially for landlords with mortgages where void periods directly impact cashflow.
Editor’s view
The maths is uncomfortable: fewer tenants in arrears, but those who do fall behind now owe substantially more. For landlords relying on rental income to service mortgages, a single non-paying tenant can now cause serious financial damage. Strong referencing and rent guarantee insurance look increasingly like essentials rather than optional extras.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 28 February 2026
Sources: Propoly, English Housing Survey
Related reading: London councils offer guaranteed rent as housing crisis deepens
