Landlords are celebrating an outstanding month in the buy-to-let market, with rising rents, rising house prices and falling arrears.

Tenant finances were in their best shape in at least two years, with arrears dropping to just 10.1% of all rent. This was a fall from 11.2% at the turn of the year, and is the lowest level since LSL Property Services plc began compiling the figures in 2008.  In March, £227.3m of rent was unpaid – a substantial drop from its peak of £361m in August 2008.

The average rent in the UK rose 0.1% in March increasing for the second consecutive month, an increase of 1.5% compared to a last year. But rents remain 4.0% lower than their peak level in August 2008.  Yields on buy-to-let property dropped slightly to 4.7% from 4.8% in February as house prices continued to rise, outpacing increases in rents.