Two-thirds of large portfolio landlords faced arrears in last year 

The share of landlords facing rental arrears has fallen to a record low of 26% in the past 12 months, down from a 42% peak in 2020.

The latest figure follows a six-year decline, according to the latest Landlord Trends research from Pegasus Insight.

The figure has been improving fairly consistently quarter by quarter since the pandemic, according to Pegasus, although there was a slight uptick in the first quarter of 2026.

However, landlords of larger portfolios are more likely to face arrears, with two-thirds (66%) of landlords with 11 or more properties experiencing arrears in the past year, compared to 18% of those with between one and ten properties.

The arrears figures are supported by separate Wave 1 2026 Tenant Trends research from Pegasus Insight, based on 3,000 interviews with private renters. In the research, 12% of tenants said they had missed a rental payment in the last year, while around nine in ten describe their rent as either manageable or comfortable.

Rental voids are a challenge

However, voids are still a challenge. 41% of landlords experienced a void of more than seven days in the past 12 months, with each lasting 66 days on average. Once again, larger portfolio landlords are more at risk, as well as HMO operators, with 68% of those with 11 or more properties affected, compared with 35% of those with smaller portfolios.

Bethan Cooke, director at Pegasus Insight, said: “Rental arrears falling to 26% is encouraging, particularly after the financial pressures experienced by tenants and landlords over recent years. But it is important not to interpret this as evidence that those pressures have disappeared. Larger portfolio landlords remain much more exposed to arrears, while voids continue to affect four in ten landlords.

“Our tenant research also shows that most renters are continuing to meet their housing costs, but many household budgets remain stretched. With inflationary pressures persisting and landlords facing higher operating and regulatory costs, the position remains finely balanced. The priority now should be to avoid adding further pressures that could ultimately feed through into rents or reduce the supply of homes available to tenants.”