The number of tenants in arrears fell year-on-year in November, as an improvement was also seen in the number of landlords making their mortgage payments.

According to new figures from the latest Tenant Arrears Tracker by Templeton LPA, a seven per cent slump was seen in the number of landlords in buy to let mortgage arrears compared with October, representing a 17 per cent fall year-on-year.

Paul Jardine, director and receiver at Templeton LPA, highlighted that the majority of tenants are coping well with rising rents and the rising cost of living. Rental prices have hit their highest level on record this year, providing greater returns for landlords.

Mr Jardine said that mortgage rates mean payments for landlords are low, while behaviour is also shifting, making them less lenient on tenants who fail to make their payments.

“With capital gains falling by the wayside in the past six months, rental income has become the most important component in an investor’s annual return – but it also pays a landlord’s mortgage cheque,” he explained.