Rent Arrears Are Now a £470m Problem - Why Rent & Legal Protection Is the Sensible Next Step

about 2 hours ago by Lisa
Rent Arrears Are Now a £470m Problem - Why Rent & Legal Protection Is the Sensible Next Step

Self-managing landlord? Here’s how to protect your rental income (without overcomplicating it).


Rent arrears aren’t rare anymore

Rent arrears aren’t a niche issue happening “to other landlords”,  they’re becoming a much bigger, much more common risk.

Recent reporting suggests landlords in England are chasing over £470 million in unpaid rent each year, with over 210,000 households falling into arrears and an average debt of £2,238 per case.

If your rent covers the mortgage, maintenance, or simply keeps the investment stable, that level of arrears isn’t just frustrating it’s a cashflow threat.


Why this matters more from 1 May

With changes coming in from 1 May, it’s not surprising we’re seeing a rise in demand for rent protection and legal cover.

Not because landlords want conflict, but because landlords want certainty:

  • certainty of income if a tenancy goes off track

  • certainty that the legal process is supported if it escalates

  • certainty that one difficult tenancy doesn’t derail the whole portfolio (or your personal finances)


The sensible path: protect the income and the process

There are two parts to the risk when arrears happen:

  1. Lost rent (immediate cashflow impact)

  2. Legal steps and costs (time, admin, fees, stress - especially if the situation worsens)

This is exactly why rent and legal protection exists, to turn a “potential disaster” into a managed process with support.


How we handle this at Personal Economy Lettings

In our area, more landlords are choosing to self-manage, but they still want a safety net and someone calm and experienced to lean on when things get complicated.

That’s why, as part of Lettings PA, we include Rent & Legal Protection in the cost as standard - subject to the tenant passing referencing.

We also include the same protection in our Fully Managed service (again, subject to referencing).

In plain English:
If the tenant meets the criteria, you’re protected from day one  and you’re not left alone to figure it out if rent stops being paid.


What the policy includes (summary)

  • 100% of monthly rent until vacant possession (no cap on months covered) 

  • Legal expenses cover (including representation/appeals)

  • Nil excess on claims made within the first 45 days 

  • Up to £1,000 on top of the deposit towards damage 

  • Overall claim indemnity of £100,000 (rent arrears + legal expenses) 

(Full terms and conditions apply — we can share policy details on request.) 


A quick landlord checklist 

If you want to reduce arrears risk and stress:

  • Don’t compromise on referencing and affordability

  • Have a clear arrears process and use it early

  • Make sure you have rent and legal protection in place (not “on the list for later”)

  • Know who you’ll call if things escalate - before they do


Final thought

Good tenants can fall into difficulty.
And even with the best intentions on both sides, arrears can happen fast.

The difference is whether you’re exposed… or protected.

If you’re self-managing and want to make sure your rent is protected (and your process is watertight), we’ll happily talk it through.

Book a Clarity Call: https://personaleconomypartners.com/landing/book-a-clarity-call 


 

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