Rents have risen just 1.4% across England and Wales over the last 12 months, LSL reports this morning.

This means the average rent of £747 per month has only gone up from £737 per month in June 2013.

The LSL data measures all rents – not just new ones, or asking price figures.

By comparison, average earnings have risen by just 0.7% on an annual basis, according to the most up to date figures released this week.

Both rents and earnings have risen at less than inflation.

David Brown, commercial director of LSL, said: “If rents had kept up with inflation for the last 12 months, this summer would have seen the average rent break through £750 per month. And that hasn’t happened.

“But while the private rented sector is becoming cheaper in real terms, the cost of living challenge continues. And this is because wage growth has been constrained.”

Rents have dropped in only two regions over the last 12 months – the north-east with a 4.6% fall, followed by an annual fall of 0.7% in the east of England.

Meanwhile, as the cost of living rises, tenant finances have struggled, according to LSL.

The proportion of late rent rose from 7% in May to 7.8% in June –equating to an additional £26m owed in late rent within the space of a month.

However, the 7.8% figure is down on the 8.3% proportion of a year ago.

Brown said: “The long-term trend for late rent is in the right direction. But it will take a long and sustained economic recovery for this to continue over the coming years.”