Average arrears rose from £1,802 to £2,597 last year which is a rise of 44% says deposit alternative firm Reposit.

Rent arrears have increased significantly recently by 44% as tenants struggle for a variety of reasons to pay their rent, new data shows.

Reposit has found that the average cash deposit during the last three months of last year was £1,228 and with those tenants in arrears typically owing £2,597, landlords have a potential shortfall of £1,369 – the highest on the company’s records.

At the same time, says Reposit, the pressures of high interest rates continue to weigh heavily on landlords’ shoulders with mortgage rates falling more slowly than hoped.

This is concerning for landlords, especially with the upcoming Renters’ Rights Bill, which will abolish Section 21 evictions and eliminate a key layer of protection.”
Grech said: “With average arrears now surpassing £2,500, the shortcomings of cash deposit schemes have become increasingly evident. This is concerning for landlords, especially with the upcoming Renters’ Rights Bill, which will abolish Section 21 evictions and eliminate a key layer of protection.

Arrears
“Once enacted, the Bill will stipulate that tenants must be at least three months in arrears (currently two months) or 13 weeks for tenants paying weekly or fortnightly (currently eight weeks) before a landlord can effectively use a Section 8 notice to evict.

“Our data separately shows that the average charge, including those for damage and cleaning (excluding arrears), reached £1,409 in Q4 2024. With the Bill requiring landlords to consider tenants’ requests to keep pets, the prospect of significant damage costs adds to their concerns.

“These future changes have sparked a surge in interest for our FCA-regulated product, which offers eight weeks of comprehensive coverage.”

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