Data released from Reposit, a deposit alternative service, reveals what it calls “a concerning surge in rent arrears” during the final quarter of last year as the economic climate took its toll on tenants.

The data reveals an uptick in the value of typical rent arrears claims from October’s £1,344 to  £2,108 in November, and maintaining high levels at £1,954 in December. Concurrently, the percentage of tenancies concluding with arrears rose from 13.7 per cent in September and October to 15.8 per cent in the subsequent two months.

Rent arrears claims were also 50 per cent higher in December 2023 when compared to 2022, despite there being just a four per cent increase in rental price between the same time period.

This spike in rent arrears corresponds with broader economic trends, including increases observed in defaults on mortgages and credit cards during the same period. Evidently, the escalating cost of living is taking a toll on tenants, impacting their ability to meet financial obligations.

Reposit chief executive Ben Grech says: “The increase is obviously reflective of tough times for tenants, but this naturally has a knock-on effect for landlords, who are facing their own challenges with the Renters Reform Bill and higher mortgage rates.”