Annual private rent bill up £8 billion

Published by Max Salsbury for 24dash.com in Housing and also in Communities, Finance

England's private rent bill for 2012 was £7.7 billion higher than in 2008, according to housing investment and shared equity mortgage provider Castle Trust.

Analysis of the latest ONS English Housing Survey showed that the number of private renters in England rose to 3.8 million in 2012, an increase of 23 percent from the 2008 figure of 3.1 million.

The average annual amount paid on private rent increased by £572 or seven percent from £7,956 in 2008 to £8,528 in 2012.

Sean Oldfield, Castle Trust's chief executive, 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.”