Research carried out on behalf of Paragon Bank has highlighted that in Q2 2021 each landlord surveyed had an average of 1.3 tenants with outstanding rent payments. This is the lowest number since Q1 2011 when research agency BVA BDRC started tracking the metric. 

The latest figure comes following a decline from 1.6 tenants per landlord since Q1 2021, with the numbers of tenants in arrears falling consistently after climbing to 2.1 in Q2 2020, as the pandemic impacted incomes. 

In addition, the average amount of outstanding rent has reached a four-year low. After falling from £2,376 in Q1 2021 to £1,781 Q2, a reduction of £595, the average amount of rental payments owed to landlords is the lowest since the end of 2017 when it sat at £1,584. 

The survey of over 750 landlords found that just over a third (36%) have had a tenant request a change to their rent, most commonly rental holidays (18%) or a reduction in rent of up to 20% (14%). Highlighting the flexible approach taken by landlords in managing their tenancies during the pandemic, agreements were reached in almost all cases as 36% of landlords also said they had granted requests to some form of change to rent.