Renting more expensive than paying a mortgage
Private renters have the highest housing costs of all tenures, followed by mortgage borrowers, then social renters, said the Ministry of Housing, Communities and Local Government.
In its latest English Housing Survey, the Government said average weekly housing costs for private renters was £200 in 2018/19. This compares to housing costs for mortgage borrowers of £172 per week, £96 per week for local authority tenants and £106 for housing association tenants.
Private renters also spend a larger proportion of their gross income (33%) on housing costs than either mortgagors (18%) or social renters in local authority and housing association properties, who spend 26% and 27% respectively.
Rent costs were highest in London with average private rent of £341 per week, 71% higher than the national average.
Weekly mortgage payments were also highest in the capital, at an average of £242. Average London weekly social rents were £124 per week for local authority tenants and £139 for housing association tenants.
Private renters in London spent 40% of their income on average on their rent. For mortgagors housing accounts for 22% of their income. Social renters in London spent 31% and 30% for local authority and housing association tenants respectively.
Unsurprisingly, owner occupied households were most likely to be in the top two income quintiles, while social renters were most likely to be in the bottom two quintiles.
Private renters were more evenly distributed across income groups, according to the survey.
Social renters were the least likely to report having no savings (82%), followed by private renters (61%) and owner occupiers (33%).