Rental arrears reach record high of £2,281 in Q1
Original Article Summary
Average rental arrears reached a record £2,281 in the first quarter of the year, according to new data from deposit alternative provider Reposit. The figures show arrears increased by 2% year-on-year, suggesting the pace of growth is slowing following sharp rises in recent years. The post Rental arrears reach record high of £2,281 in Q1 appeared first on PropertyWire.
PropMatch Curated Analysis
Average rental arrears hit a record £2,281 in Q1 2025, outstripping the average cash deposit of £1,308 by 74%, raising material questions about deposit adequacy for landlords operating under the Renters' Rights Act and without Section 21 recourse.
Investor Relevance
Landlords and BTL investors must reassess whether standard cash deposits provide sufficient financial protection given the growing arrears-to-deposit gap. The removal of Section 21 amplifies this risk by extending the time and cost required to recover possession, making tenant vetting and deposit strategy more critical acquisition and management decisions.
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