Overall residential rental arrears rose as tenant finances took a turn for the worse in April, with 9.9% of all rent being late or unpaid at the end of the month, up from 8.7% in March, according to LSL Property Services latest monthly rental market survey. In total, unpaid rent from tenants in April amounted to £306m, representing a 14% increase from the £267m outstanding in March.

David Brown, Commercial Director of LSL Property Services, said: “Many tenants’ finances suffered in April as a result of seasonal spending in over the Easter period, not to mention the increasing cost of renting. In spite of this deterioration, tenant arrears have performed above expectations in recent months.

“Nevertheless, April’s rise should serve as a warning that landlords cannot afford to take their eye off the ball. Despite several monthly dips in 2012, rents are still rising at a faster rate than wages annually. With a faltering economy, and further public sector job losses to come, an increasing number of rented households will see their finances stretched.”