The number of tenants in severe arrears with their rent increased by 3.4% during Q4 2013, compared to the previous quarter, according to the latest Tenant Arrears Tracker by LSL Property.

There are now 67,000 tenants in ‘severe arrears’, an increase of 2,000 over Q3 2013, despite a 20% improvement over the rest of 2013.

Paul Jardine, director and receiver at Templeton LPA, which is part of LSL, said: “Economic prospects appear to have transformed since this point last year, with a pervading confidence taking hold. But households are still heavily indebted, and wages are only starting to very dimly reflect a brighter economic picture. After a year of dramatic changes, the closing stages of 2013 have been no less intense for anyone struggling with their monthly rent.

“Household budgets will remain under intense pressure in 2014 – the situation for many tenants is not easy by any means. But even with the strains of Christmas and New Year, severe rental arrears are in a much better state than they were just six months ago. That could point towards fewer people facing eviction in months to come.”

The number of evictions rose at the end of 2013 as in Q3 2013 court orders went up by 11%.