Landlords across England are dealing with a growing challenge: rent arrears. According to recent research from Propoly, a platform that supports tenancy compliance and offers financial protection for landlords, more than £470 million in rent goes unpaid annually across the country’s private rental sector.
The research analysed the latest government figures for 2024-25 and revealed that around 210,163 households fell behind on their rent. On average, each household owed £2,238, bringing the total arrears to an estimated £470.3 million nationwide.
London recorded the highest arrears in monetary terms, with unpaid rent reaching £109.5 million. The North West followed closely behind, accumulating £103.1 million in arrears. Other regions with notable arrears included the South East (£61 million), the West Midlands (£58.1 million), and Yorkshire & Humber (£38 million). The South West reported the lowest arrears, just under £14 million.
When looking at the proportion of households affected, London accounted for 23.3% of those in arrears, while the North West made up 21.9%. The South East and West Midlands contributed 13% and 12.4% respectively, with Yorkshire & Humber at 8.1%. Once again, the South West recorded the smallest share at just 3% of households in arrears.
Sim Sekhon, group CEO of Propoly, highlighted the significance of these figures. “Over 210,000 households falling behind on rent in a single year underlines the scale of the issue,” he said. “When this translates to over £470 million in missed payments, it exposes landlords to considerable financial risk. For many landlords, rental income isn’t just supplementary—it’s essential for covering mortgage repayments, property maintenance, and other financial obligations.”
The report points to rising living costs as a key driver of arrears. Many households are struggling to keep up with rent alongside other essential expenses, from energy bills to daily living costs. “It’s understandable that tenants are feeling the strain,” Sekhon explained, “but the consequences for landlords can be severe and, in some cases, destabilising.”
The regional breakdown highlights how London and the North West are most affected. High living costs, larger rental markets, and densely populated urban areas contribute to higher arrears levels. Meanwhile, smaller regions like the South West experience lower arrears, reflecting smaller populations and different rental market dynamics.
For landlords, these arrears represent more than just missed income. They can affect cash flow, delay maintenance, and even impact mortgage repayments. In some cases, prolonged arrears may jeopardise the financial stability of small-scale landlords who rely on rental income as their primary revenue source.
Propoly recommends integrating rent protection insurance into the tenancy process as a proactive solution. By doing so, landlords can safeguard their income from the outset. Sekhon emphasises that platforms like Propoly make it simple for letting agents to offer one-click access to rent protection as part of standard tenancy services.
“Rent protection insurance provides landlords with confidence that missed payments or defaults will be covered,” Sekhon said. “It also strengthens retention rates, creates additional revenue opportunities for agents, and reduces exposure to financial risk.”
The findings also serve as a reminder of the importance of tenant screening and ongoing financial support. Landlords can minimise arrears by conducting thorough affordability assessments, maintaining open communication with tenants, and offering flexible payment arrangements where possible.
The research paints a clear picture: while rental income is a vital source of revenue for landlords, it is increasingly at risk due to financial pressures on tenants. With over 210,000 households in arrears, the scale of the problem cannot be ignored.
By combining proactive measures such as rent protection, careful tenant selection, and regular engagement, landlords can mitigate these risks and maintain a more stable rental income. As the market continues to evolve, financial protection and strategic tenancy management are becoming essential tools for landlords in England.
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