The number of tenants in rent arrears is at its lowest level for ten years, according to research by Paragon.

The buy-to-let lender found that in the second quarter of this year, landlords reported an average of 1.3 tenants in arrears.

It is down from 1.6 tenants per landlord in the first quarter and represents the lowest figure since 2011 when research agency BVA BDRC started tracking the metric.

Paragon says the average number of tenants in arrears per landlord has been falling consistently over the past year after it peaked at 2.1 in Q2 2020 when the pandemic hit.

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 was £1,584.

The survey of over 750 landlords found that 36% have had a tenant request a change in rent, most commonly a payment holiday or a cut of up to 20%.

Paragon’s findings suggest that most requests were granted as 36% of landlords reported that they had agreed to some form of rent change.

Paragon director of mortgage sales Moray Hulme says: “It is really encouraging to see the average number of tenants in rent arrears at the lowest point for ten years and the amount of outstanding rent at the lowest since 2017.

“Our latest survey has also shown how landlords have been supporting tenants throughout the pandemic, granting requests to changes to rent in the vast majority of cases.

“These requests have been falling alongside the incidences and volume of rent arrears and considering that the fewest number of people are now on furlough since the scheme launched in March 2020, it is a good indicator that the economy is bouncing back well.”