Disputes involving rental arrears now account for more than one in five of all rental market disputes, the highest percentage seen over the last five years, research by FCC Paragon has revealed.
The AML platform analysed rental disputes data across England, Wales, Scotland and Northern Ireland, looking at what proportion of total disputes lodged across the UK rental market were related to rental arrears.
The figures show that last year, an estimated 47,405 disputes were lodged by tenants across the private rental sector.
This marked a 13.6% increase in total dispute numbers versus the previous year and the highest total seen over the last five years.
Some 9,784 of these disputes involved rental arrears, again the highest figure in the last five years, whilst also marking a huge 80.8% year on year increase.
As a result, over one in five disputes involved rental arrears, which is by far the highest proportion seen since 2019/20.
Even during the pandemic (2019/20 & 2020/21), the number of rental disputes involving arrears accounted for just 14.3% of total disputes lodged.
Whilst this figure declined to 12.9% in 2021/22, it has increased consistently over the last two years.
The managing director of FCC Paragon, Bekki Leaves, commented: “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.
“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.
“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.
“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.
“In doing so, they put themselves in the best position with respect to avoiding a dispute centres around a lack of rent being paid.”
