More tenants struggled with rent payments last month after a survey showed arrears levels have reached the highest level since January last year, but rents in London saw one of the biggest month-on-month drops in the country, with a 1.5 per cent slide, although at a typical £1,087 (€1,298) a month, they are still 6.3 per cent higher than a year ago.

A total of £326 million(€389m) of rent was either late or unpaid, according to LSL Property Services’ Buy-to-Let Index, up from £241 million (€288m) in November.

The cost of Christmas on already strained household budgets is likely to be one factor behind the rise, which equates to 10.1 per cent of all rent across England and Wales.

With finances under pressure, the study also found that the average rent fell by 0.9 per cent to £734 (€877) per month.

However, rents are still 3.2 per cent higher when compared with 12 months previously, just below inflation. Rents across the country have fallen for two months in a row, but LSL warned that this seasonal ‘blip’ is unlikely to last for long as pressure on the sector continues amid strong demand from people struggling to get on the property ladder.

Campbell Robb, chief executive of Shelter, said: “With the rising cost of living, wage freezes and rents remaining high, it’s not surprising that rent arrears are at their highest for a year.

“This time of year is particularly difficult for many families as bills coming in from Christmas take their toll on finances already stretched to breaking point.”

The east of England and the north-east recorded the biggest month-on-month falls at 1.7 per cent, while rents in the West Midlands, the south-west and Wales bucked the trend, with increases of 1.3 per cent, 0.9 per cent and 0.4 per cent respectively.