Analysis of the latest ONS English Housing Survey by Castle Trust also found that the number of private renters in England rose to 3.8m in 2012, up 23% on 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.
Castle Trust said the dramatic increase in the number of private renters and the cost of rent is ‘increasingly worrying’ given additional recent analysis which showed that monthly mortgage expenditure constitutes 30% of an average household’s total outgoings.
Sean Oldfield, chief executive officer at 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.”
