Compared to a year ago, 35,000 fewer tenants are facing rental arrears of more than two months, according to the latest Tenant Arrears Tracker by LSL Property Services.

In absolute terms, those more than two months behind on their rent now number just 67,000. This compares to 102,000 tenants at least two months in arrears in the same period last year, or an annual improvement of 35,000 households.

Representing a 35% annual improvement, this comes on the back of successive quarterly falls. As a proportion of all tenants, those in serious arrears of more than two months has also improved, standing at 1.5% in Q2 2014, compared to 2.2% in Q2 2013. This means 98.5% of tenants in the private rented sector avoided falling into significant rental arrears during Q2.

However, despite fewer tenants falling into the most severe arrears, the number actually facing eviction, while significantly lower in absolute terms, has continued to rise. As of the first quarter of 2014, 33,000 tenants are facing potential eviction via court order, up 5.9% from Q4 2013. On an annual basis this leaves evictions levels 10% higher than in Q1 2013.