The value of both arrears and tenancy claims fell in 2025 compared with the previous year.

This suggests a slight easing of financial pressure in the rental sector, according to deposit alternative service Reposit, which conducted the research. 

Throughout 2025, the average value of arrears dropped to £1,980 from £2,143 in 2024, an 8% reduction.

Claims values also declined, falling from £1,207 to £1,178, a decrease of just over 2%.

However, while the monetary value of arrears and claims reduced, the frequency of cases edged up marginally over the year, indicating that although the scale of debt per case was lower, more tenants fell into difficulty. 

The fall in arrears values may reflect a cooling in rental growth. While rents are still increasing, the rate has slowed. 

According to the latest ONS data, average UK monthly rents rose by 4.0% to £1,368 in the 12 months to December 2025, down from annual growth of 4.4% in the 12 months to November.

Wider mortgage data also points to improving conditions. 

UK Finance reported 9,520 buy-to-let mortgages in arrears of 2.5% or more in Q4 2025, 9% fewer than the previous quarter, while 770 buy-to-let properties were taken into possession during the quarter, down 14%.

While the latest figures suggest some easing in overall arrears values, landlords and tenants are continuing to contend with high borrowing costs, stretched affordability and a changing regulatory framework.

Reposit chief executive Ben Grech says: “The Renters Rights Act is creating a more complex operating environment for landlords, fundamentally changing how arrears and repossessions are managed. 

“With the abolition of Section 21, many landlords are understandably becoming more cautious in their approach to rent arrears.”