Rental costs in England and Wales fell for the second consecutive month in December 2011, according to the latest figures from LSL Property Services.

The data from LSL, which owns lettings agents including Your Move and Reeds Rains, shows that the average cost of renting a home depreciated by 0.8% to £711 a month in December compared to the previous month.

Rents fell in all regions except for Yorkshire and the Humber, the West Midlands and the East Midlands, the LSL survey shows.

But despite the slowdown, the cost of renting has increased over the past year, on the back of higher demand from tenants, with average rents having increased by 4% since December 2010.

“The rental market was sheltered from the full impact of the seasonal lull by the strength of underlying tenant demand as many prospective renters took the opportunity to move in the run-up to Christmas at a time when the market is traditionally less competitive,” said David Newnes, director of LSL.

However, there is growing evidence to suggest that more tenants are struggling to keep up with their rental payments, with more renters falling into rent arrears over the Christmas period.

LSL found that 10.7% of all rent was late or unpaid at the end of December, compared with 9.3% in November.

Ant Lyons (Editor) Your Property Network Magazine

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