Here’s some uplifting news from the rental sector that’s sure to put a smile on your face. According to the latest Landlord Trends report by Pegasus Insight for Paragon Bank, the number of landlords experiencing rent arrears has plummeted to a record low. In the second quarter of 2026, only 26% of landlords reported arrears, a drop of 4 percentage points from the previous quarter. That’s the lowest figure ever recorded!
But wait, there’s more good news! The proportion of landlords making a profit has crept up by two percentage points, reaching a hearty 86%. Plus, average gross rental yields have hit a robust 7.02%. Talk about a win-win!
UK Finance also paints a rosy picture, with long-term arrears on buy-to-let mortgages decreasing for nine straight quarters. At the end of Q2, they accounted for just 0.52% of outstanding mortgages, down from 0.68% the previous year.
Lisa Steele from Paragon Bank highlights the sector’s resilience, noting that despite economic and regulatory challenges, most tenancies are ticking along nicely, providing reliable income for landlords. She emphasises that strong profitability and healthy yields are key to maintaining landlord confidence.
So, while landlords remain cautious about the broader economic landscape, they’re feeling pretty chipper about their portfolios. It seems the rental market is not just surviving but thriving, offering a beacon of stability and success in uncertain times. Cheers to that!
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