A fresh look at the UK rental scene by FCC Paragon, a top lettings AML platform, has turned up a startling figure. More than one in five disputes in the private rental market now revolves around unpaid rent.
That’s the highest share in five years. The research dug into rental disputes across England, Wales, Scotland, and Northern Ireland.
Last year, tenants lodged 47,405 disputes—an eye-watering 13.6% jump from the year before.
It’s the most seen in half a decade.
Out of those, 9,784 were tied to rental arrears.
That’s a whopping 80.8% surge from the previous year and a five-year peak.
“As a result, over one in five disputes involved rental arrears, which is by far the highest proportion seen since 2019/20,” FCC Paragon’s data shows.
Even during the pandemic years of 2019/20 and 2020/21, arrears only made up 14.3% of disputes.
That dipped to 12.9% in 2021/22, but it’s been climbing ever since.
Bekki Leaves, FCC Paragon’s Managing Director, isn’t mincing words.
“Whilst the dark days of the pandemic are thankfully behind us, the figures suggest that the private rental sector landscape has only become more volatile when it comes to the relationship between landlord and tenant,” she said.
She’s seeing a trend. “In fact, the total number of disputes lodged has increased consistently over the last four years, whilst the number of these disputes relating to rental arrears have not only climbed since 2021/22, but are also accounting for a far higher proportion of the total,” Leaves noted.
With the Renters’ Rights Bill looming in 2025, she’s bracing for more turbulence.
“With the sector undergoing some sizable changes in 2025, not least with the introduction of the Renters’ Rights Bill, the expectation is that this market volatility will only increase further,” she warned.
Her advice? Check your tenants properly.
“This worrying trend really highlights the importance of thorough referencing when it comes to finding a tenant, as it allows landlords to identify the most financially viable applicant based on their proof of finances, credit history, references and employment status,” Leaves stressed.
It’s about dodging trouble.
“In doing so, they put themselves in the best position with respect to avoiding a dispute centres around a lack of rent being paid,” she added.