Late Rent Payments Impacting Landlords in the UK

Property investors are increasingly struggling with tenants who are late or not paying the rent, research from mortgage lender Molo has found.

  1. Late Rent Impact:
    • Property investors in the UK are facing challenges with tenants who are late or not paying the rent.
    • Landlords are owed an average of £725 from late rent, with an average of 2.9 late payments per year.
  2. Financial Impact:
    • Late rent payments have a significant financial impact on landlords.
    • The average owed amount due to late rent is £725.
  3. Frequency of Late Payments:
    • Landlords in the UK experience an average of 2.9 late payments per year.
  4. Increase in Late Payments:
    • Nearly two-thirds (59%) of landlords have seen an increase in late rent payments, attributed to the cost of living crisis.
  5. Tenant Communication:
    • Landlords encourage tenants facing difficulties to communicate promptly, explaining reasons for delays and requesting additional time.
    • Open dialogue can lead to collaborative solutions.
  6. Landlord Responses:
    • Over half (54%) of landlords have implemented payment plans for tenants facing late rent.
    • Landlords have also seen tenants move out (56%) due to affordability issues, leading to reduced rental prices (55%) to support tenants.
  7. Regional Variations:
    • Investors in Yorkshire and the North East experience the highest amount of late payments, averaging around 3.4 per year.
    • Greater London landlords are owed the most in late rent (£806), followed by the East of England (£770) and the East Midlands (£760).
    • Landlords in the North West experience the least in late rent payments, but it still amounts to around £661.

Late rent payments have become more prevalent, likely influenced by the cost of living crisis. Landlords are adapting by implementing payment plans and, in some cases, reducing rent to support tenants during challenging times. Communication between landlords and tenants is emphasized to find collaborative solutions.

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