Mortgage Arrears, Rental Pressures and AI: My View on Propertymark’s August 2026 Update

By Richard Gedall MNAEA | AARLA, Director of My Estate Luton Limited

Propertymark’s Pulse update published on 14 August 2026 covers several important issues affecting the property industry: mortgage arrears and possessions, regional rental-price differences and the growing use of artificial intelligence in customer complaints.

These subjects may appear separate, but they all point to the same conclusion: property is becoming more complex, and landlords, tenants and homeowners need accurate advice, proper evidence and clear communication.

Mortgage arrears are falling—but financial pressure remains

The latest UK Finance figures contain some positive news.

During the second quarter of 2026, there were 77,940 homeowner mortgages in arrears of at least 2.5% of the outstanding balance—1% fewer than during the previous quarter.

There were also 8,390 buy-to-let mortgages in arrears, representing a quarterly reduction of 6%.

Possessions also decreased. During the quarter, 1,150 homeowner properties and 630 buy-to-let properties were taken into possession. These numbers remain significantly below the long-term average.

That is encouraging, but we should not become complacent.

Behind every arrears or possession case is a homeowner, landlord or tenant facing genuine financial pressure. Mortgage costs, taxation, licensing fees, maintenance expenses and increasing regulatory obligations all affect the viability of owning and operating property.

My advice is simple: if you are struggling with mortgage payments, rent or property-related costs, address the problem immediately. Ignoring it will not make it disappear. Early communication with lenders, landlords, tenants and professional advisers usually provides more options than waiting until formal action has begun.

National rental figures do not tell the whole story

Propertymark also examined differences in rental prices across the regions.

National averages are useful for identifying wider trends, but they should never replace proper local market knowledge. Rental demand, achievable rents, tenant affordability and property supply can vary substantially between different towns—and even between neighbouring streets.

This is particularly relevant in Luton, where demand is influenced by transport connections, employment, London commuters, airport-related employment, students, families and the availability of Houses in Multiple Occupation.

A landlord should not set a rent simply because an online portal shows similar properties being advertised at a particular figure. An advertised rent is not necessarily an achieved rent.

Evidence of comparable properties that have actually been let is far more reliable. This has become even more important under the Renters’ Rights Act, particularly where a proposed rent increase may be challenged before the First-tier Tribunal.

My view is that landlords need realistic, evidence-based rental valuations. Setting the rent too low damages the investment, but setting it unrealistically high can result in longer void periods, unsuitable applications and avoidable disputes.

AI can assist agents—but it cannot replace professional judgement

Artificial intelligence is already changing the way customers and property professionals communicate.

Used properly, AI can help organise information, identify missing documents, summarise complicated correspondence and improve efficiency. I use technology within my own business, and I believe responsible use can improve the service clients receive.

However, AI is not a replacement for professional judgement, local knowledge or personal accountability.

Propertymark has highlighted the growing number of lengthy, legal-sounding complaints being produced with the assistance of AI. Some complaints are entirely legitimate, and consumers have every right to raise concerns. The problem arises when an automatically generated letter contains inaccurate legal claims, exaggerated allegations or irrelevant arguments.

A long complaint is not automatically a strong complaint.

Agents must investigate the facts, check the tenancy or management documents, review the communication history and respond to the actual evidence. Equally, agents should not use AI to send generic responses that fail to address a customer’s concerns.

Most complaints escalate because of poor communication, missing records or a failure to explain what has happened. Technology may assist with the administration, but a responsible person must remain accountable for the final response.

Why professional property management matters

The property industry is now subject to increasingly complicated legislation, licensing requirements, safety obligations and consumer-protection rules.

For landlords, getting something wrong can result in financial penalties, difficulties obtaining possession, rent repayment orders or an inability to rely on important legal rights.

For tenants, poor management can mean unresolved repairs, unclear communication or uncertainty about who is responsible for dealing with a problem.

This is why qualified, regulated and accountable property agents are becoming more important—not less.

At My Estate Luton, our role is not simply to collect rent or advertise properties. We help landlords understand their responsibilities, maintain proper records, manage risks and deal with tenants fairly. We also ensure that decisions are supported by evidence rather than assumptions or automated answers.

The market is changing quickly. Landlords and tenants who communicate early, retain proper evidence and obtain professional advice will be in a much stronger position than those who wait for a problem to become a dispute.

Watch Property mark Pulse – 14 August 2026:
https://www.youtube.com/watch?v=_Opd_i97cik

Need advice about letting or managing property in Luton?
Contact My Estate Luton Limited to discuss professional lettings, property management, HMO management and landlord compliance.

Sources: UK Finance, Mortgage Arrears and Possessions Q2 2026; Property mark Pulse, 14 August 2026.