Rental arrears have fallen to the lowest level recorded by Pegasus Insight, but the new figures show a sharp divide between small landlords and larger portfolios: 66 percent of landlords with 11 or more properties reported arrears in the past year, against 18 percent of those with one to 10 homes.
The research puts the overall proportion of landlords experiencing arrears at 26 percent, down from 42 percent at its 2020 peak. Pegasus said the result extends a six-year decline, although it does not mean missed rent has stopped being a material cashflow risk for landlords with larger books.
Large portfolios cannot treat the headline rate as a complete picture of risk. They are more exposed to individual tenant problems and are likely to carry a greater number of tenancies at any one time, so a low sector-wide rate can sit alongside substantial arrears management work.
Large portfolios report a different arrears picture
Pegasus Insight’s quarterly Landlord Trends study tracks private-landlord attitudes and portfolios with the NRLA. The latest data shows that arrears are concentrated unevenly: two-thirds of landlords with at least 11 properties experienced them during the previous 12 months, compared with fewer than one in five smaller landlords.
That does not automatically mean larger portfolios are managed less well. More properties create more potential points of failure, and professional operators may also be more likely to record and report shortfalls formally. The practical lesson is that portfolio size still needs to shape cashflow assumptions, arrears procedures and reserves.
Landlord Knowledge has previously reported that 84 percent of landlords still described their portfolios as profitable. Pegasus adds a useful warning beneath that broad resilience: a smaller share of landlords may be affected overall, but the landlords who are affected can be carrying a much heavier exposure.
Voids remain more common than missed rent
The same research found 41 percent of landlords had experienced a void lasting more than seven days in the past year. The average void lasted 66 days, and 68 percent of landlords with 11 or more properties reported one, compared with 35 percent of smaller operators.
Those figures make void planning at least as important as arrears recovery. A rent account can be up to date and a portfolio can still lose income through an extended gap between tenancies, reletting delays or work required before a property returns to the market.
This follows Landlord Knowledge’s June coverage of tight rental supply and tenant demand. Strong demand can shorten marketing time, but it does not remove the effect of repair schedules, failed references or an owner deciding to improve a home before it is let again.
Pegasus also found 12 percent of tenants had missed a rental payment over the past year in its separate Tenant Trends research. Most renters described their rent as manageable or comfortable, but the data points to continued pressure on a minority of household budgets while landlords face higher operating and regulatory costs.
The Pegasus Insight Landlord Trends programme surveys around 750 professional landlords each quarter through the NRLA membership base. That makes it particularly useful for understanding the risks faced by active portfolio owners, rather than the whole population of rental-property owners.
What this means for landlords
- If you run 11 or more properties: stress-test rent accounts and reserves against several concurrent arrears cases rather than relying on the sector average.
- Watch for: void periods as well as late payments, because a 66-day average gap can outweigh a short arrears episode.
- Bottom line: arrears are easing overall, but larger portfolios still need a clear plan for uneven cashflow.
Editor’s view
The record-low arrears figure is welcome, but averages can make portfolio risk look simpler than it is. Landlords with a larger number of tenancies should take the good news as a reason to keep controls tight, not as a reason to reduce their financial buffer.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 11 September 2026
Sources: Pegasus Insight
Related reading: Landlord confidence firms as 84% stay profitable
