The proportion of landlords experiencing rental arrears has fallen to an all-time low, as 26% reported arrears in the last year, Pegasus Insight has found.

The firm’s latest Landlord Trends research showed that the latest data completes a sustained six-year decline from the 42% recorded at the peak of 2020.

Pegasus Insight stated the improvement in arrears performance has been "fairly consistent", easing gradually from the highs of the pandemic period through successive quarters.

While there was a slight uptick in Q1 2026, the research consultancy said the long-run trend has reasserted itself, with Q2 representing the lowest incidence recorded since tracking began.

Of the arrears that do occur, the majority remain concentrated among larger portfolios. Two thirds (66%) of landlords with 11 or more properties experienced arrears in the past year, compared to 18% of those with between one and 10 properties.

Pegasus Insight said that while arrears have continued to fall, void periods remain a "more persistent feature of landlords’ experience".

Two in five (41%) experienced a void of more than seven days in the past 12 months, with each lasting 66 days on average.

Voids are markedly more common among larger portfolio landlords and HMO operators, with 68% of those with 11 or more properties affected, compared to 35% of those with smaller portfolios.

Director at Pegasus Insight, Bethan Cooke, stated: "Rental arrears falling to 26% is encouraging, particularly after the financial pressures experienced by tenants and landlords over recent years. But it is important not to interpret this as evidence that those pressures have disappeared. Larger portfolio landlords remain much more exposed to arrears, while voids continue to affect four in 10 landlords.

"Our tenant research also shows that most renters are continuing to meet their housing costs, but many household budgets remain stretched. With inflationary pressures persisting and landlords facing higher operating and regulatory costs, the position remains finely balanced. The priority now should be to avoid adding further pressures that could ultimately feed through into rents or reduce the supply of homes available to tenants."

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