The level of tenants in arrears of two months or more over the past year was 20% above the long-term average. In absolute terms, the number of tenants in severe arrears rose by 4.8% to 94,000 in the first quarter.

Capital Fortune business manager Rob Killeen said it would be interesting to see how many of the tenants were in the public rather than private rental sector: “It comes as no surprise given the difficulties in both the labour market and the general economy that rental arrears are on the increase.

A number of buy-to-let landlords told him they were also concerned about  direct housing benefit payments to tenants, he added. “Looking to meet daily costs such as food and clothing it is little wonder that the payment of rent can sometimes take a back step.”

The rise in arrears in the first quarter of 2013 reverses a decline in the final quarter of 2012 and indicates a return to the steep rise experienced over much of last year.

The number of tenants facing eviction reached 25,286 in the final quarter of 2012 – the highest level ever recorded in an individual quarter and 10.2% higher than the year before.

Tenants in severe arrears

Source: LSL/Templeton LPA