Private rental sector tenants have greatest housing costs in England

Private rental sector households in England have the greatest housing costs and spend more on housing costs than owners, according to a new analysis.

The English Housing Survey affordability, published by the Department of Communities and Local Government indicates that in the 2015/16 financial year, the average rent in the sector was £184.

Capital Pains

However, for those renting in London, the average rent stood at £300 per week. This compares with an average weekly mortgage payment outside of London of £159.

In addition, the average weekly rent for social renters was lower at £106 for housing association renters and £95 for local authority tenants.

The report reveals that in London, it was on average, cheaper to have a mortgage than to rent in the private sector. Despite this, the report suggests that elsewhere, rents were almost the same as weekly mortgage repayments.

On average, those buying their property with a mortgage spent 18% of their household income on mortgage payments. Rental payments made up an average of 28% of household income for social renters and 35% of household income for private renters.

Regardless of tenure, households in London were found to spend a greater proportion of their income on housing costs than households in other regions of England. The proportion of household income spent on mortgage payments was greater in London at 22%, compared with 17% outside of London.

Private tenants in London spent 45% of their household income on rental payments in comparison to 32% outside of London. Social renters spent 32% of their household income on rental payments, in comparison to 27% outside of London.

Private rental sector tenants have greatest housing costs in England

Private rental sector tenants have greatest housing costs in England

Arrears

The percentage of income spent of housing fees reduced substantially for households with independent children, when all household income is taken into account.

In the private rented sector, couples with independent children spent 34% of their income on rental payments. Lone parents with independent children saw this proportion fall to 58% to 44%.

One quarter of social renters were found to either currently be in or previously have been in rental arrears during the last year. This was greater than the proportion of private renters who were currently or previously in arrears.

26% of local authority and 25% of housing association tenants were found to be currently or previously in arrears during the last year. This was greater than the proportion of private renters at 9%.

Landlords worried about their tenants falling into arrears should protect their investment with our Rent Guarantee Insurance.

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