Rent Arrears Are Rising - Why Protecting Your Rental Income Matters More Than Ever

For many landlords, rental income is an important part of their financial planning. But what happens when the rent doesn't arrive?

New figures suggest that rent arrears are becoming more common, highlighting why protecting rental income deserves just as much attention as finding the right tenant.

At Personal Economy Lettings, we believe Rent & Legal Protection Insurance should be an important part of a landlord's financial planning. It's why we include it in both our Protected Let and Ultimate Let services.

What are the latest rent arrears figures telling us?

Research from deposit alternative provider Reposit, reported by Property Industry Eye and LandlordZONE in November 2026, found that:

• 18% of tenancies in its data recorded rent arrears during the third quarter of 2026, compared with 12% a year earlier.

• Average outstanding arrears reached £1,837, only £13 higher than the previous year.

• 2026 is on course for the highest arrears rate in three years within Reposit's figures.

These figures don't represent every tenancy in the UK, but they do highlight a concern worth taking seriously.

Financial pressures on tenants remain significant and even responsible tenants can experience unexpected changes in their circumstances.

Why does this matter for landlords?

Most landlords have financial commitments attached to their properties.

Mortgage payments, insurance, maintenance costs and other expenses don't stop simply because the rent hasn't been paid.

A missed payment may be manageable. Several missed payments can quickly become a much bigger concern.

The Renters' Rights Act has also changed the possession process in England, making it particularly important for landlords to understand their options and respond appropriately when problems arise.

This isn't about expecting tenants to default. It's about recognising that circumstances can change and having sensible protection in place.

Why we include Rent & Legal Protection Insurance

As landlords ourselves, we understand the importance of protecting rental income.

Our approach has always been to combine careful tenant referencing, clear communication and prompt action when rent becomes overdue.

But even the most thorough referencing cannot guarantee that a tenant's financial circumstances won't change during their tenancy.

That's where Rent & Legal Protection Insurance can make a real difference.

Through our partnership with Goodlord, eligible cover can provide:

• Protection for unpaid rent, with qualifying payments continuing until vacant possession is obtained.

• Up to £100,000 in legal expenses cover for eligible proceedings.

• Professional claims support, helping landlords manage the process when difficulties arise.

All insurance is subject to the policy's eligibility requirements, terms, exclusions and claims conditions. Early reporting of missed payments is particularly important.

Protection shouldn't mean giving up control

We know many landlords are perfectly happy managing their own properties.

You may already have a good relationship with your tenants and prefer to handle maintenance and day-to-day matters yourself.

That doesn't mean you should have to manage every risk alone.

Our Protected Let service is designed for landlords who want to stay involved while benefiting from professional support with rent collection, compliance and Rent & Legal Protection Insurance.

For those who prefer us to take care of the day-to-day management too, our Ultimate Let service includes the same approach to rental income protection as part of a fully managed offering.

 Lisa Bailey, Residential Lettings Manager, comments:

"As landlords ourselves, we know how important reliable rental income is. We've always believed that protecting that income should be part of good property management, rather than something a landlord only considers after a problem arises."

A little preparation can make a big difference

The majority of tenancies will never require an insurance claim.

But when circumstances change, having the right support and protection in place can make a difficult situation easier to manage.

At Personal Economy Lettings, our focus is on helping landlords remain confident, informed and in control.

Are you self-managing your rental property in Bristol, South Gloucestershire or Bath?

If you'd like to understand how our Protected Let service could support you, we'd be happy to have a conversation.

No pressure, no complicated process – just straightforward advice from people who understand what it's like to be a landlord.

Personal Economy Lettings

Helping local landlords stay confidently in control.

Telephone: 0117 985 6703

WhatsApp: 07950 197915

www.personaleconomylettings.co.uk

Sources: Reposit Q3 2026 arrears figures, reported by Property Industry Eye (5 November 2026) and LandlordZONE (4 November 2026). Insurance information: Goodlord Rent Protection & Legal Expenses Insurance.