New research shows social landlords have recorded a significant drop in rent arrears, however the looming welfare cuts could once again cast them out of pocket.
At this point obtaining an affordable place to live in the UK feels close to impossible. For years interest rates have been so high individuals have struggled to pay their rent. However, now rates have started to decline, the impending cuts to benefits are due to next sledgehammer of comfortable living.
Jonathan Cox, chief data officer at Housemark
The latest research from Housemark – the leading data and insight company for the UK housing sector – saw experts analysing data from February 2025 and included 169 social housing providers. They found landlords are on track to exceed year-end performance expectations, with arrears forecast to end the financial year at 2.6% – a 10% reduction from this time last year.
Despite the positive news, the research also highlighted that the changes to PIP and Universal Credit benefits could disproportionately affect the 59% of social housing tenants who live with a disability or long-term illness.
This year the benefit payments are due to increase in line with inflation, but the eligibility criteria will be tightened up from November 2026.
‘The latest figures show that social landlords are doing an outstanding job in collecting income under increasingly tough conditions – with arrears down significantly year-on-year,’ Jonathan Cox, chief data officer at Housemark said. ‘But this progress is fragile. The impact of forthcoming welfare reforms could reverse these gains and lead to hundreds of millions of pounds in unpaid rent across the sector.
‘Housing providers must act now – by strengthening support for tenants, ensuring income maximisation, and preparing their organisations for increased financial pressure.’
Against this backdrop, the report calls on social landlords to support tenants in boosting their incomes. An estimated £23 billion in unclaimed benefits and entitlements remains untapped, suggesting targeted support could help residents avoid falling into debt while improving financial resilience and wellbeing.
The report can be accessed in full here.
Image supplied from Housemark
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