Although a new record high has been set for rents across England and Wales at £758 per month in October 2013, rental arrears are at their lowest since 2008 - according to LSL Property Services.

Tenant arrears were just 7.1% of all rent in October, the lowest figure since November 2008 when 13.1% of all rent in the UK was then in arrears.

David Brown commercial director of LSL Property Services, said: “Until we can boost homebuilding to the tune of an extra 200,000 a year, rents will keep rising on an annual basis. Yet annual rises are still below inflation. Without a doubt households don’t have cash to burn at the moment. So the fact tenants have paid down late rent to such an extent is testament to the professionalism of landlords, the availability of advice for tenants, and the stability of the entire industry.

“The first rung of the housing ladder is still a big step up. Despite a healthier circulation of mortgages, even a 5% deposit is fast becoming a challenge for many would-be first-time buyers. For the foreseeable future a healthy private rented sector will be as critical for the UK economy as it is for those besieged every month with other household bills.”