The value of rental arrears owed to local authorities has risen by 55% over the past six years, new research has revealed.

The 2025 Rental Arrears Index, by public sector payments specialist Access PaySuite, used freedom of information requests to reveal the number of social housing units owned by 100 local authorities, the number of these units in rental arrears, and the overall value of arrears.

On average, local authorities providing social housing are each owed £2.86 million in rental arrears, up by 55% from £1.85 million in 2019, and 5% higher than the £2.72 million owed in 2024.

The average number of social housing units in rental arrears per authority has also risen, by 1.9% in the past year and 5.3% since 2019.

Further rises are revealed in the amount of rental arrears owed per tenant, climbing from £494 in 2019 to £669 in 2025, an increase of 35.4%.

The average value of rental arrears owed per household has remained consistent since 2024, while the proportion of properties in arrears has increased by around 2%, suggesting a growing share of tenants are carrying persistent financial burdens.

229 local authorities in the UK own social housing, with a total 1.6 million units of housing stock recorded by the Regulator of Social Housing in 2024.

If findings from the research were to be applied across all 229 local authorities which own social housing, the total value of rental arrears could be as high as £655 million.

Alex Common, product and engineering director of Access PaySuite, said: “While falling rents for social housing in real terms might suggest reduced pressure on tenants, the reality is that many households are still struggling to keep up with payments. Economic uncertainty, welfare changes and rising living costs mean rental arrears continue to place a significant strain on local authorities and the communities they serve.”

“For councils and housing associations, the challenge remains finding a sustainable balance between supporting vulnerable renters and maintaining the income needed to deliver essential services. The data reveals a persistent and troubling rise in the level of tenant debt that continues to outpace growth in the proportion of households in arrears, which signals serious long-term risks.

“At Access PaySuite, we work with social housing providers to simplify rent collection, giving tenants more choice and flexibility in how they pay. Making rent payments easier is one of the fastest ways to boost collection rates, cut costs, and free up resources to support those most in need.”