The proportion of landlords experiencing tenants in rental arrears has fallen to the lowest ever since 2017, revealed the latest research undertaken on behalf of Paragon Bank.
The survey of over 750 landlords, carried out by BVA BDRC, revealed that 32% of landlords have had at least one tenant in rental arrears during the last 12 months.
This marks the lowest level of rent arrears in six years, when the metric was first tracked in its current format.
In addition the research revealed that the proportion of vacant rental properties has also fallen to its lowest level since 2017.
On a quarterly basis, fewer than one in four (24%) landlords experienced a vacant rental property in Q4 2022, a decline of four percentage points compared to the previous quarter.
The average void duration has also dropped from 82 to 70 days in Q4 2022.
According to the research, landlords managing larger portfolios (comprising 11 or more properties) had even shorter void periods compared to the average — only 44 days.
Richard Rowntree, managing director for mortgages at Paragon Bank, said: “It’s great to see that that the proportion of landlords experiencing tenants who are behind on their rent has fallen to the lowest levels since the metric was first tracked in 2017.
“We do know, however, that the cost of living crisis will not impact tenants in the same way, and it is likely that paying rent will be a real challenge for some.
“From speaking to landlords, we also know that many have good relationships with their tenants and are often open to working with them to overcome any financial issues.
“It’s [also] extremely encouraging to hear that voids reported by landlords are at their lowest level since 2017 — this is unsurprising, given the demand for privately rented homes.
“This adds further weight to the argument for investment in affordable housing across all tenures, something that BTL landlords should be recognised for making an essential contribution towards.”
