Private renters in England paid a total of £7.7 billion more in 2012 than in 2008, according to new analysis by Castle Trust.
Analysis of the latest ONS English Housing Survey by Castle Trust shows that the number of private renters in England rose to 3.8 million in 2012, an increase of 23% from the 2008 figure of 3.1 million.
The average annual amount paid on private rent increased by £572 or 7% from £7,956 in 2008 to £8,528 in 2012.
This comes the back of recent analysis in the 2011 ONS Family Spending Report which showed that monthly mortgage expenditure constitutes 30% of an average household’s total outgoings.
Sean Oldfield, chief executive officer, Castle Trust said: “Despite mortgage rates being well below their historic average, renting is booming as homeownership becomes more and more of a distant dream. Mortgage payments represent a significant proportion of a household’s monthly spending and many people do not see the viability of owning a home.
“The risk of rising mortgage rates is a major issue for homeowners with their finances already under pressure and shared equity can play a major role in reducing risks, including the risk of going into arrears, by cutting monthly mortgage commitments.”