The number of arrears disputes has reached a higher level than during the pandemic, says AML compliance firm FCC Paragon.

More than one in five of all lettings disputes are caused by rent arrears, the highest proportion for five years says FCC Paragon’s MD Bekki Leaves (pictured).

Her firm’s figures reveal that last year an estimated 47,405 disputes were lodged by tenants across the private rental sector based on data taken from deposit scheme TDS.

Rent arrears
This marked a 13.6% increase in all dispute numbers versus the previous year and was also the highest total over the past five years.

Some 9,784 (20%) of these disputes involved rent arrears – a 80% year-on-year increase.

Even during the pandemic (2019/20 & 2020/21), the proportion of disputes involving arrears accounted for just 14.3% of the total.

Although this figure declined to 12.9% in 2021/22, it has increased consistently over the last two years.

The figures suggest that the private rental sector landscape has only become more volatile.”
Leaves adds: “While the dark days of the pandemic are thankfully behind us, the figures suggest that the private rental sector landscape has only become more volatile when it comes to the relationship between landlord and tenant.

“With the sector undergoing some sizable changes in 2025, not least with the introduction of the Renters’ Rights Bill, the expectation is that this market volatility will only increase further.

“This worrying trend really highlights the importance of thorough referencing when it comes to finding a tenant, as it allows landlords to identify the most financially viable applicant based on their proof of finances, credit history, references and employment status.”

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